Think Xero Backs Up Your Client's Data? Think Again

Michael Tunstall

June 1, 2025

Think Xero Backs Up Your Client's Data? Think Again

Cloud-based accounting doesn’t mean risk-free. Here’s why backing up Xero is a no-brainer for your clients.

If your clients rely on Xero to manage their business finances, it’s easy to assume their data is safe simply because it’s in the cloud. But this is a dangerous misconception.

Xero’s terms and conditions are clear: they don’t take responsibility for backing up your data. That means if a cyber attack, human error, or rogue integration wipes out financial data, it could be gone forever.

In fact, Xero clearly states in their own terms and conditions:

“You must maintain copies of all data inputted into the service. Xero expressly excludes liability for any data loss.”

Here’s why Xero Backup is a must-have for any business:

1. Protection against accidental deletion
Staff can make mistakes. If a user accidentally deletes invoices, contacts, or key financial data, there’s no way to undo it without a backup.

2. Defence against app integration errors
Xero integrates with hundreds of third-party apps. If one of these misfires or corrupts data, the damage can be instant and irreversible.

3. Safeguard from disgruntled employees
In rare cases, ex-employees or contractors with access may delete or alter records intentionally. Backups give peace of mind.

4. Business continuity and compliance
In a financial audit or data loss situation, being able to quickly restore financial records is critical for compliance and continuity.

5. Automated daily backups
With a proper Xero backup solution, data is automatically backed up daily. You don’t have to remember to do anything.

6. Easy restore when needed
Restore individual records or your entire Xero organisation at the click of a button.

If your clients value their financial data, they need to treat it like any other critical business system — with secure, automated backup.

Make Xero Backup part of your managed services offering and help your clients protect what matters most.

Want to learn more about adding this to your portfolio? Get in touch.

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