Even if your accountant is the subscriber to your Xero account, the responsibility for backing up the data ultimately rests with YOU, the business owner.
Here’s why:
Data Ownership: While your accountant may manage the Xero subscription and have access to the data, the financial information in Xero belongs to your business. It’s your responsibility to ensure its safekeeping and availability.
Xero’s Terms of Use: Xero’s Terms of Use explicitly state that users are responsible for maintaining their own copies of the data entered into the service. This applies regardless of who the subscriber is.
Business Continuity: Backing up your data is a critical part of your business continuity plan. In case of data loss due to technical issues, accidental deletion, or even a dispute with your accountant, having your own backup ensures that your business operations can continue uninterrupted.
Accountant-Client Relationship: While your accountant may offer assistance in setting up backups or recommend backup solutions, it’s not their sole responsibility to ensure your data is backed up. Their primary role is to provide accounting and financial services, not data management.
How to address the backup responsibility:
Discuss with your accountant: Have an open conversation with your accountant about data backups. Clarify who is responsible for performing backups, how often they should be done, and where the backups will be stored.
Establish a backup process: Decide on a backup method that works for your business. You can either manually export data from Xero or use a third-party backup solution that integrates with Xero.
Regularly review and test backups: Ensure that your backups are being performed as scheduled and that you can successfully restore the data if needed.
Consider a written agreement: If necessary, create a written agreement with your accountant outlining the responsibilities for data backups and other aspects of your Xero subscription management.
By taking these proactive steps, you can ensure that your business’s financial data is protected and readily available,regardless of who manages the Xero subscription.