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The Hidden Risks: Breach of Contract

Many Xero users, and their trusted accountant, are unaware that they are in breach of Xero’s Terms of Use by not maintaining a local backup of their financial data. This oversight exposes them to significant risks:

Breach of Contract: Xero’s Terms of Use are a legally binding contract that outlines the rights and responsibilities of both Xero and its subscribers. By using Xero, your clients agree to abide by these terms, which explicitly state that subscribers are responsible for maintaining their own backups. Failing to comply with this term could result in limitations on their ability to use Xero’s services or even account termination. Not having a backup in place demonstrates a blatant disregard for the integrity of the agreement and exposes your clients to significant risk. In the event of data loss, they will have no recourse against Xero, as they have violated the terms of service they agreed to upon signing up.


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Add Your Heading Text Here As a business owner using Xero, you should absolutely be backing up or taking copies of your data. While Xero does have robust security measures in place and performs regular backups, their Terms of Use clearly state that: You’re responsible for maintaining copies of your data entered into our services.

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