Where previously if using other accounting systems it would be necessary to take a backup of your data in case of a fire, technical issues with your computer or theft of your computer, as Xero is a cloud-based platform, it provides the extra step of backing up all your files so you needn’t worry.
In order to retain all various pieces of data stored on your computer it would be a necessary precaution to have a backup somewhere. Otherwise, if something happened that prevented you from accessing the computer and all its files, you would have lost everything – with no obvious way to get it back.
You can export certain files to generate a CSV file-based backup or even utilized multiple USB drives, however the latter is particularly impractical and would be expensive to keep up with all your larger files.
Now that Xero is here
Xero software is stored in the cloud, meaning that there is no risk of data loss. You could lose every computer/device you have ever logged into Xero on and purchase a new computer/device and still see the same Xero data – how convenient is that?
It adds another layer of security and provides full reporting stored in one place, with easy-to-use features allowing you to alter reports if you have used incorrect information or even if you have additional information to add – Xero will save and store your data as well as allow you to update it.
Other software providers
This reverse or edit feature was difficult to use and understand in older versions of other software similar to Xero such as Sage. If you wanted to reverse a transaction the steps were unclear and fiddly therefore a manual backup was advisable for that software, unlike Xero. Mistakes are simple to reverse in Xero and all transaction can be reverse due to the audit trail that can be viewed with who has done what and when on the software. Receipt Bank are another provider that store all your data safely without need for a backup so at LWA we highly recommend these two software providers to clients.
Senior personnel at Xero themselves have commented that it isn’t necessary for their users to backup their Xero data as it is provided for them in case of theft, a fire or similar. So, in summary there is no requirement or need to backup data if you and your business are using a cloud-based product like Receipt Bank or Xero. If you would like more information on this topic or have a query regarding the software providers mentioned such as Sage, Xero or Receipt Bank, please get in touch with our inhouse LWA expert Matt Jones on 0161 905 1801.