Xero's Terms of Use are a contract with you. They include Xero's commitment as a service provider and your obligations as a customer.
As a professional, it is important to understand the terms of use when agreeing to any service or contract.
The agreement ensures that both Xero and you, the business owner, understand your respective roles in keeping your financial data safe.
By agreeing to these terms of use, you are forming a legally binding contract with Xero.
Why the Terms of Use matter:
The terms of use clarify the specifics of your partnership with Xero.
- Xero's commitment: To provide a reliable and secure service that meets industry standards, promising to safeguard your data and keep it confidential, as well as provide customer support and regular updates to the service.
- Your commitment: Includes using the service in compliance with applicable laws and regulations, protecting your login information, and paying any fees associated with the service.
By agreeing to these terms, you establish both parties are on the same page in terms of the agreement. This provides clarity and a solid foundation for your relationship with Xero as a service provider.
Why You Must Back Up Your Data:
One of the most important aspects of the Terms of Use is the responsibility for data retention.
While Xero hosts your data, their Terms of Use state that the ultimate responsibility for data integrity sits with you.
This is specified in:
Clause 11. Your responsibilities:
Clause 37. Data loss:
Clause 53. Limitation of liability:
Regular backups are therefore essential to:
Comply with the Law: Tax authorities often require businesses to maintain accessible records for several years. Relying solely on a live cloud platform without an independent copy can leave you vulnerable during an audit.
Mitigate Risk: Under Clause 37 (Data Loss) and Clause 53 (Limitation of Liability), Xero limits its liability for data loss. If data is accidentally deleted by a user or an unauthorized third party, Xero may not be able to recover it.
Ensure Business Continuity: Having a separate backup ensures that your business remains compliant and operational even if your access to the service is interrupted or if you decide to change platforms in the future.
Not backing up your Xero data would also fall under non-compliance, potentially putting your company at risk of legal action.
Control-C highly recommends that you backup your Xero data which will provide you with peace of mind knowing that your dealings with Xero are fully compliant, and that your data is safe and secure.