The Importance of Data Backup in Platforms such as Xero and QuickBooks

allanpage
6 days ago
3 min read

Cloud-based accounting platforms like Xero and QuickBooks have revolutionised how businesses manage their finances - offering flexibility, automation, and real-time collaboration.

But one crucial question often goes unasked: who is responsible for backing up your data?

If you assume your cloud provider handles it, you could be putting your firm and your clients’ financial information at serious risk.

Shared Responsibility Still Applies

You will often read about shared responsibility with Microsoft 365 - and the same principle applies to Xero and QuickBooks.

These cloud providers handle platform uptime, security patches, and infrastructure reliability. However, the data you input into their systems is still your responsibility.

For example, Xero’s Service Agreement clearly states:

“You must maintain copies of all data inputted into the service. Xero expressly excludes liability for any data loss no matter how caused.”

So, if a member of staff accidentally deletes client data, a ransomware attack locks your files, or your account is compromised - Xero won’t be able to recover that information for you.

Why a Third-Party Backup Solution

is Essential

Many accountants and business owners assume that because Xero and QuickBooks are cloud-based, they’re automatically backed up. Unfortunately, that’s not the case.

These platforms are designed to keep their services running, not to recover your specific data in the event of corruption or deletion.

A dedicated third-party backup solution provides peace of mind by:

✅ Protecting against human error – Restore deleted or altered records quickly and accurately.

✅ Defending against cyber crime – Recover data without paying ransoms or suffering downtime.

✅ Reducing the risk of service interruption – Access your data even if your accounting platform is temporarily unavailable.

Supporting Compliance and Audit Requirements

If your business operates in a regulated sector, such as finance, accountancy, or healthcare - retaining accurate data is vital.

Third-party backup tools ensure:

Regulatory compliance by securely storing records for the required retention period
Audit readiness with full restoration of deleted or historical records
Data integrity for peace of mind when handling sensitive client information

This not only keeps you compliant with UK data protection standards but also builds trust with your clients.

Simpler Management and Lower Costs

Modern backup platforms allow you to manage multiple systems, from Microsoft 365 to Xero and QuickBooks - through a single control panel.

This unified approach makes data management easier and more efficient while avoiding the cost of multiple software licences.

It’s an easy way to strengthen your cyber security posture and streamline your IT processes at the same time.

Protect Your Business Data Before It’s

Too Late

Your accounting platform is the heartbeat of your financial operations, but without a reliable backup, it’s vulnerable.

A third-party backup solution ensures your Xero and QuickBooks data is secure, recoverable, and compliant, giving you full control over your most valuable business asset: your data.