Xero has become an essential accounting software for businesses across the globe. While this streamlines and simplifies many tasks, it also introduces risk. Important financial data is stored within this platform. What happens if it’s suddenly compromised?
To prevent this many businesses are starting to implement Xero backups. But what is that? And do you really need it?
The Problems with Xero
Xero is a well-designed platform, but this doesn’t make it immune to cyber-attacks and downtime. In fact, in July 2024 they experienced a major global outage. This incident prevented many users from being able to access or use the platform, delaying salaries for thousands of workers. To make matters worse, this occurred just one month after Australia’s end-of-financial year (EOFY), a delicate time for many businesses and staff alike.
In October 2025, the platform was once again impacted by a days-long AWS outage. This shut down dozens of sites and applications, including Xero, and impacted operations for thousands of businesses across the planet.
These incidents demonstrate that just because information is stored within the cloud, that doesn’t necessarily mean it’s safe or immutable. And when an incident does occur, those left unprepared will pay the price.
What Happens Without Xero Data Backup?
Without secure backups in place, you risk a variety of negative consequences:
- Data Loss: Information can be stolen or inadvertently deleted, leaving you without essential data.
- Downtime: Outages can render you unable to complete certain important financial tasks, causing delays.
- Staff Turnover: Staff become understandably angry when they don’t get paid on time. This could cause them to leave your employment and go elsewhere.
- Damaged Trust: A history of downtime and payment delays causes significant reputational damage, lowering your profitability.
- Compliance Issues: Financial data is heavily protected by law. In the worst-case scenario, an incident could cause you to receive harsh penalties.
These consequences can arise from a cyber threat, glitch, or simple human error. Eventually, one of these three things will occur. It’s simply inevitable. Your task is to ensure your business can survive when it does.
The Importance of Xero Backups
A dedicated Xero backup solution captures and stores a second, entirely separate copy of your data. This might include:
- Invoices
- Contacts
- Payroll
- Financial reports
- Transaction histories
- Bank or credit card data
In the event that Xero suddenly becomes unavailable, a backup means you will retain access to this critical information. Business operations will continue, alternative solutions can be considered for payroll (such as a direct bank transfer), and you avoid many of the negative outcomes that you would otherwise experience.
Choosing the Right Backup Solution
With that said, not all backup and recovery solutions are created equal. Some are better than others, and when we’re discussing such an important safety net, you can’t afford to take any chances. Here are some crucial traits you should look for when choosing a Xero backup and restore solution:
- Immutability: At least backup should always be immutable. This means that it cannot be altered or tampered with. Immutability helps prevent human error or threat actors from wiping your backup.
- Automation: Often, backup solutions are undermined because employees and leadership simply forget to update data. Many Xero cloud backups allow you to automate this process, eliminating this risk.
- Audit Trails: When financial data is involved, paper trails are crucial. You must be able to prove that you made an effort to backup and protect data. For this reason, choose a solution that allows you to create audit trails.
- Point-in-Time Recovery: Point-in-time recovery means you can restore data from a specific moment in time, rather than needing to restore all information at once. This can be useful when only some of your data was rendered inaccessible (for instance, an accidental deletion).
- Security and Compliance: Financial data is some of the most sensitive in the world, and must be protected. Ensure that any Xero backup solution you choose is highly secure and fully compliant with all regulations.
Need proof of our expertise? Explore how we helped other businesses succeed
Protect Your Financial Data With Expert Support
When planning your strategy for data backup, Xero is an important consideration. Everything might be working just fine right now, but that won’t always be the case. Your ability to protect sensitive financial data and keep moving, even when Xero’s accounting platform is offline, will make the difference between a strong business and one in constant danger.
Are you worried about data loss? Cybersecure can help. Our comprehensive backup solutions ensure that no matter what happens, your business can keep running like nothing is wrong. If you value operational continuity, get a quote and take your first step towards a safer future.
FAQs
Are Xero data backup solutions really needed?
You absolutely need to backup data from Xero. This isn’t just important to maintain business continuity. Many governments also require the presence of backups to prove that you’re using strong data protection practices.
How Do We Choose the Right Xero Backups?
To choose the right Xero backup, think about immutability, security, compliance, recovery options, and ease of use. Your ideal solution will be simple, effective, and safe.
Can You Backup Xero Data On the Platform?
No, you cannot backup Xero data within the platform itself, for one simple reason: it is not a true backup and will not keep your data secure. All backups must be completely independent from the platforms you typically use, or they are worthless.
Are Backups Mandatory for Compliance?
Yes, data backups are required for compliance with many regulations and cyber security frameworks. They protect continuity and demonstrate that you are prepared to handle the worst-case scenario.
Where Can I Find Help?
Backup and recovery can be complicated, so we understand your concerns. If you need assistance, consider reaching out to an experienced backup service provider.