A Reliable Xero Backup Solution For Your Business

Xero is a powerful cloud-based accounting platform that helps businesses manage their finances efficiently. While Xero offers built-in data security, it does not provide a native backup and restore feature. This means retrieving data can be difficult if data is accidentally deleted, corrupted, or lost due to human error or cyber threats. This is where a Xero backup solution becomes essential.

What is a Xero Backup?

A Xero backup is a copy of your accounting data stored securely, separate from the Xero platform. This backup allows businesses to restore lost or altered information quickly and efficiently. Unlike traditional backups for on-premises software, Xero backups must be managed externally using third-party tools or manual exports.

Why Backing Up Xero Data is Essential

Even though Xero operates in the cloud, data loss can still occur due to:

• Human Error – Accidental deletions or overwriting of critical records can lead to irreversible loss. According to a 2023 IBM report, human error accounts for approximately 23% of data loss incidents in cloud-based systems.
• Limited Xero Data Retention – While Xero maintains your data as long as you have an active subscription, it only offers limited recovery options for deleted transactions (7 days for draft invoices, 90 days for some deleted transactions).
• Compliance and Auditing – Keeping historical records of financial data is crucial for audits, compliance, and business continuity. Many industries require financial records to be retained for 5-7 years.

Methods for Backing Up Xero Data

There are multiple ways to back up your Xero data:

1. Manual Exports

You can manually export key financial reports and transaction data from Xero, including:

• General Ledger
• Profit and Loss Statements
• Balance Sheets
• Bank Transactions
• Contacts (Suppliers and Customers)

While this method ensures you have a copy of essential data, it is time-consuming and prone to human error.

2. Third-Party Backup Solutions

Boxkite is a third-party automated Xero backup solution, ensuring continuous data protection. Data from Xero is automatically transferred to your Dropbox account. Includes Contacts, Debtor Invoices, Creditor Invoices, Bank Transactions, Journals, Manual Journals, Financial Statements & Files.

3. Using API for Custom Backups

For businesses with technical expertise, Xero's API can be used to extract and store data programmatically. This approach requires development resources but offers complete control over backup frequency and storage locations.

Best Practices for Xero Data Backup

To ensure data security and quick recovery, follow these best practices:

• Automate Backups – Use a third-party solution for scheduled and secure backups to eliminate human error and ensure consistency. Try Boxkite today.
• Store Backups Securely – Choose cloud storage solutions with encryption and multi-location redundancy to protect against both cyber threats and physical disasters. Boxkite uses Dropbox to store backups securely.
• Implement Access Controls – Restrict access to Xero and backup files to authorised personnel only, using two-factor authentication where possible.
• Maintain Independent Data – Maintain a backup of accounting data separate from Xero for compliance and audit purposes, going back 7 years. Boxkite updates your files on an ongoing basis, so to keep a backup of each year, you can simply copy the backed-up files and save them to a separate drive.

Conclusion

While Xero is a robust accounting solution, it does not offer built-in backup and restore features. Implementing a Xero backup strategy is crucial for protecting your business from data loss, ensuring compliance, and maintaining financial continuity. Boxkite provides a comprehensive, user-friendly solution that requires minimal setup and maintenance. Our automated backup process will safeguard your business's accounting data without adding to your workload.

Are you currently backing up your Xero data? If not, now is the time to invest in a reliable backup solution!