Why Backing Up Cloud Accounting Services Is Harder Than You Think—and What You Can Do About It

In the era of cloud computing, small businesses have embraced platforms like Xero, MYOB, and QuickBooks Online for their convenience, accessibility, and automation. But when it comes to backing up your data, these cloud services present a new set of challenges that many business owners aren’t fully aware of.

The Myth of the “Full Backup”

Unlike traditional PC-based accounting software—where you could archive a file and create a snapshot of your entire system—cloud platforms do not offer a simple “download everything” button. Instead, they provide selective export options, allowing you to download:

• Transaction records
• Contact details
• Cost centres
• Some reports

However, these exports do not include the full system configuration, audit trails, or attached documents in a comprehensive format. You can’t recreate your entire accounting environment from these exports alone.

Subscription Dependency

Another critical issue is data access dependency on active subscriptions. If your subscription lapses or is cancelled, your access to historical data may be restricted or lost altogether. While some providers retain data for compliance purposes, this is not the same as having a usable backup that you control.

Why Businesses Must Take Ownership of Their Backups

Cloud providers often state that data protection is a shared responsibility. This means it’s up to you to ensure your data is backed up in a way that meets your business continuity and compliance needs. Here’s what you should do:

1. Review your provider’s backup and retention policies.
2. Understand what data you can export—and what you can’t.
3. Implement a regular manual export routine.
4. Consider third-party backup solutions.

Third-Party Backup Solutions for Xero and MYOB

Fortunately, several third-party services have stepped in to fill the backup gap:

🔹 Xportmydata (for Xero)

• Offers regular and one-time backups of your Xero data.
• Includes attachments like invoices and receipts.
• Provides payroll backup for Australian and NZ users.
• Allows export to Excel and CSV formats for easy access

🔹 SysCloud (for Xero)

• Automatically backs up multiple Xero organizations.
• Offers incremental backups of invoices, payroll, inventory, and more.
• Helps protect against accidental deletion and data loss 

🔹 Redstor (for Xero)

• Provides encrypted cloud backups and instant recovery options.
• Designed for disaster recovery and compliance 

For MYOB, third-party backup options are more limited, but businesses can still manually export reports and data regularly. Some managed IT service providers may offer custom backup solutions tailored to MYOB environments.

Final Thoughts

Cloud accounting software has revolutionized how small businesses manage finances—but it’s not a set-and-forget solution when it comes to data protection. Take the time to understand your provider’s limitations, and invest in a backup strategy that ensures your business data is safe, accessible, and under your control.