Xero Backup for Legal Firms

Legal billing involves trust accounts, matter-based records, and strict regulatory requirements. When the SRA audits or clients dispute fees, complete records are essential. Boxkite automatically backs up your Xero data to Dropbox, ensuring you can always demonstrate compliance.

Why Law Firms Need Xero Backup

Legal accounting has unique requirements. Client money must be kept separate from office money. Trust account transactions require detailed records. The SRA can audit your accounts at any time, and fee disputes can emerge years after matters close.

Practice management systems sync matter billing to Xero, but these integrations can fail. When sync issues occur, your financial records may not match your practice system. An independent backup captures your Xero data regardless of integration problems.

Professional indemnity claims often arise years after the original work. To defend your firm, you need complete billing records showing the scope of the retainer, work done, and fees charged. If those records were archived or lost, your defence is weakened.

Critical Legal Data in Xero

Client matter billing and time records
Trust account transactions and balances
Disbursement records and recoveries
Client payment receipts and allocations
Fee earner profitability data
Office account transactions
Supplier invoices and expenses
Partner drawings and distributions

Legal Practice Data Risks

Regulatory audits and fee disputes can surface years after matters close. These scenarios show why complete records matter.

SRA Accounts Audit

The SRA conducts an inspection and requests client account records from 18 months ago. Your practice manager has changed, and someone archived old transaction data. Without backup, you can't demonstrate compliance with Accounts Rules.

Client Fee Dispute

A former client disputes their final bill two years after the matter closed. They claim time was overcharged and disbursements weren't incurred. Without complete matter records showing original time entries and invoices, you can't defend your billing.

Trust Account Discrepancy

Your accountant discovers a discrepancy in client account reconciliation. To investigate, you need transaction history from when the error occurred. If that data was modified or deleted, proving what happened becomes impossible.

PI Claim Evidence

A negligence claim is made against your firm for advice given three years ago. Your insurer needs complete billing records to understand the scope of the retainer and work done. Incomplete records weaken your defence.

Legal Compliance & SRA Requirements

Law firms face strict regulatory requirements around financial records, particularly for client money.

Key Compliance Considerations

  • SRA Accounts Rules require complete client account records
  • Trust account reconciliations must be documented and retained
  • Professional indemnity claims may need billing records years later
  • Anti-money laundering rules require transaction audit trails
  • Law Society audits can request financial records at any time

How Boxkite Protects Your Practice

Automatic Daily Backups

Every transaction—office and client account—backed up automatically.

SRA Audit Ready

Complete client account records available for regulatory inspections.

Matter-Level Records

All matter-tagged transactions preserved with their allocations.

Long-Term Evidence

Historical records for fee disputes and PI claims years later.

Works With Your Practice Software

These practice management systems commonly integrate with Xero:

Clio Leap PracticeEvolve Smokeball ActionStep InfoTrack Stripe GoCardless Xero Practice Manager

Frequently Asked Questions

Protect Your Practice Records

Don't let missing records complicate SRA audits or fee disputes. Start protecting your Xero data today.

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