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Xero - Backup data file

Under all the new rules and regulations set down by the Tax Practitioners Board, it is a requirement to keep a backup copy of the data file. We do not want to start a new Xero file from a backup - that is not logical. We need the ability to click on a button and run a backup to comply with the new rules. Using another app is also not a solution. It must be built in the the Xero program that we can use as bookkeepers. This is an essential feature if we are to comply and do regular backups of the datafile.

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Lois Davidson shared this idea  ·   ·  Report…  ·  Admin →
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  • Campbell Green commented  ·   ·  Report

    Dear Lois,

    Thank you for bringing up your concerns regarding data backups and compliance with the Tax Practitioners Board's (TPB) new rules and regulations. We understand your desire for a simple, built-in backup feature within Xero.

    The concept of a "single-click" restore or backup in Xero is a myth and far more complex than it initially seems. It's not a straightforward process like restoring a file on your computer. Furthermore, in today's increasingly regulated environment, more and more businesses are seeking to meet compliance frameworks such as ISO 27001, SOC 2, and others. For these organizations, the need for a comprehensive Business Continuity Plan (BCP) is paramount, far exceeding the value of a simple, incomplete restore.

    Why Relying on Xero for Backups is Not Practical

    While it might seem logical for Xero to provide a built-in backup feature, relying solely on your accounting platform for backups is generally impractical and risky. Here's why:

    Proprietary Formats Limit Flexibility:
    - Xero, if it were to offer backups, would likely store them in proprietary formats. These formats are designed to be compatible only with Xero. This poses a significant risk. In a disaster recovery (DR) scenario, you might find yourself unable to access your data if you need to switch to a different platform.
    Enhanced Disaster Recovery:
    - Disaster recovery is about more than just having a backup; it's about having a plan to restore your business operations swiftly. If Xero's backup is in a proprietary format, you could face delays and complications during a DR event.
    Redundancy and Security:
    - Relying on a single backup solution is risky. If Xero experiences a failure or cyber-attack, your data could be compromised. Using a third-party backup service adds an extra layer of security.
    Counterparty Risk:
    - Relying on one vendor for both your accounting platform and backup solution introduces counterparty risk. Diversifying your backup solutions by using third-party providers mitigates this risk.

    A Real-Life Example: QuickBooks Online Backups

    Many Xero users point to QuickBooks Online, which allows users to back up their data to a local drive, as an example of why Xero should offer a similar feature. However, this seemingly convenient feature presents its own challenges. QuickBooks Online backups are typically saved in a proprietary format, which is not directly usable for recovery into another accounting platform.

    Therefore, even with a built-in backup feature, the lack of data portability due to proprietary formats can severely hinder your ability to recover your financial data effectively.

    The Importance of Business Continuity Planning (BCP)

    Lois, your requirement to "keep a backup copy of the data file" is crucial for compliance. However, it's not just about having a backup; it's about having a comprehensive Business Continuity Plan (BCP).

    Why Control-C is a Sound Solution

    This is where a third-party application like Control-C becomes invaluable. Control-C provides:

    - Open Format Backups: Control-C offers backups of your Xero data in open formats, ensuring your data remains accessible and portable.
    - Comprehensive BCP Assistance: We offer professional consulting services to help you formulate a robust BCP. This includes developing a tailored strategy for recovering your financial records in your required format and platform.
    - Compliance Framework Support: We understand the importance of compliance with frameworks like ISO 27001, SOC 2, GDPR, HIPAA, PCI DSS, and others. Our services help you meet these requirements.
    - Auditable Record Keeping: Control-C provides auditable record-keeping, which is essential for compliance and maintaining accurate financial records.
    - Operational Continuity: Control-C is designed to help you recover your data and maintain business operations, not just store a static backup.

    Addressing Your Concerns

    You mentioned, "We do not want to start a new Xero file from a backup - that is not logical." We completely agree. A proper BCP ensures you can recover your data and continue operations with minimal disruption.

    While a built-in Xero backup button might seem convenient, it wouldn't address the broader compliance and recovery needs you face. Control-C, on the other hand, provides a comprehensive solution that meets the TPB's requirements and ensures your business's financial data is secure and recoverable.

    We'd be happy to schedule a call to discuss your specific needs and demonstrate how Control-C can help you achieve compliance and ensure business continuity.

    Sincerely,

    Campbell Green
    Control-C.com