How to back up and restore your QuickBooks, Xero, or MYOB company file to prevent accounting data loss

Backup & Storage KB-415

Summary

This guide helps you troubleshoot and resolve: How to back up and restore your QuickBooks, Xero, or MYOB company file to prevent accounting data loss. Follow the steps below to fix the issue.

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Common Causes

Your accounting software company file contains every transaction, invoice, and reconciliation your business relies on. A hardware failure, ransomware attack, accidental deletion, or corrupted file can mean days of lost work and serious financial reporting problems. Setting up a reliable backup routine for QuickBooks, Xero, or MYOB is one of the most important safeguards you can put in place for your business records.

This guide walks you through backing up your company file locally and to the cloud, verifying those backups are working, and restoring them safely when needed.

Before You Begin

Before configuring backups, take a moment to identify what you need to protect:

QuickBooks Desktop: The company file (.qbw) and any attached files (.qbb backup copies).
Xero: Xero is cloud-based, but you can export reports and back up the organisation's data manually or via the API.
MYOB AccountRight: The company file (.myob) which can be backed up to a local .zip archive.

If you use Xero, your data is already stored in the cloud and protected by Xero's infrastructure. However, exporting periodic reports (Profit and Loss, Balance Sheet, full transaction list) to PDF or CSV gives you an offline copy you can refer to if your account access is ever disrupted.

Quick Fix: Enable Built-In Scheduled Backups

All three platforms include a built-in backup scheduler. Enabling it is the fastest way to automate protection.

QuickBooks Desktop

Open QuickBooks and sign in to your company file as the Admin user.
Go to File > Back Up Company > Create Local Backup.
Choose Local Backup and click Next.
Tick Save backup copy automatically and select how often (we recommend Every time you close the company file or Daily).
Choose a backup location such as an external drive or a OneDrive folder, then click OK.

MYOB AccountRight

Open your company file in MYOB AccountRight.
Go to File > Backup > Schedule Backups.
Tick Schedule automatic backups and choose a frequency (Daily is recommended).
Select a destination folder on an external drive or cloud sync folder, then click OK.

Xero

Sign in to Xero at xero.com.
Click the Organisation menu, then select Export.
Choose the reports you want to export (we recommend the full Accounting Reports and Transaction List).
Download and save the exports to a secure folder on your computer or cloud storage.

Detailed Instructions: Set Up a Reliable Backup Strategy

A single backup is not enough. Follow the 3-2-1 rule: keep three copies of your data, on two different types of media, with one copy offsite.

Step 1: Choose Your Backup Locations

Pick at least two destinations from the list below:

External USB drive: Affordable and fast. Rotate two drives so one is always stored offsite.
OneDrive or Google Drive: Built into Windows and macOS. Files sync automatically once placed in the sync folder.
Backblaze, iDrive, or similar: Continuous cloud backup services designed for small business.

Step 2: Configure Your Primary Backup

Use the built-in scheduler from the Quick Fix section above as your primary backup. Confirm it is running by checking the destination folder after your next scheduled backup window.

Step 3: Add a Cloud Copy

For QuickBooks and MYOB, the simplest approach is to point your backup destination at a folder inside your OneDrive, Google Drive, or Dropbox sync folder. The file will then upload to the cloud automatically.

Locate your OneDrive or Google Drive folder (usually under C:\Users\YourName\OneDrive on Windows or in Finder > iCloud Drive on macOS).
In your accounting software's backup settings, change the destination to a subfolder such as OneDrive\Backups\QuickBooks.
Run a manual backup to confirm the file appears in the cloud folder.

Never store your only backup copy on the same drive as the original company file. If that drive fails, you lose both the file and the backup at the same time.

Step 4: Verify Your Backup

A backup that has never been tested is not really a backup. Verify yours monthly:

Check that the backup file exists and the file size is reasonable (not 0 KB).
For QuickBooks, open the .qbb file and use File > Open or Restore Company > Restore a Backup Copy to confirm it opens cleanly.
For MYOB, attempt to open the backup archive in AccountRight using File > Restore to confirm it is valid.

How to Restore Your Company File

When you need to recover data, follow the steps for your software carefully. Always restore to a new file name first so you do not overwrite a recoverable original.

Restoring QuickBooks Desktop

Open QuickBooks and go to File > Open or Restore Company.
Select Restore a Backup Copy and click Next.
Choose Local Backup and browse to your .qbb file.
When prompted, choose Save it now and give the restored file a new name (for example, MyCompany-Restored-2024.qbw).
Open the restored file and verify your data looks correct before deleting anything.

Restoring MYOB AccountRight

Copy the backup .zip file to a safe location.
Open MYOB AccountRight and go to File > Restore.
Browse to the backup file and follow the prompts.
Save the restored company file under a new name and open it to confirm the data is intact.

Restoring Xero

Because Xero is fully cloud-based, there is no company file to restore. If data has been deleted or changed in error:

Go to Accounting > Advanced and review the History & Notes on affected accounts to see recent changes.
Use the Audit Trail report (under Reports > All Reports) to identify what was modified and by whom.
Manually re-enter or reverse the affected transactions.
For larger recoveries, contact Xero support directly for guidance.

Restoring over your current company file will permanently replace your live data. Always restore to a new file name first, verify the contents, and only then swap it into production.

Troubleshooting

Scheduled Backup Fails or Does Not Run

Confirm the software is actually being closed each day if you chose "Every time you close the company file".
Check that the destination drive is connected and has enough free space.
Verify the user account running the software has write permission to the backup folder.
Ensure the software is not being run in a virtualised environment that suspends scheduled tasks.

Backup File Is 0 KB or Corrupted

Run a manual backup and watch for any error messages.
Disable antivirus temporarily and retry, as some security products interfere with backup writes.
Check the destination folder for filesystem errors using your operating system's disk check tool.
Try a different backup destination to rule out a faulty drive or sync folder conflict.

Cloud Backup Does Not Sync

Confirm the OneDrive, Google Drive, or Dropbox desktop client is running and signed in.
Check that the backup file is not excluded by your sync client's settings.
Large backup files can take time to upload on slower connections; allow several hours before assuming failure.

Restored File Will Not Open

Confirm you are using a compatible version of the software for the backup file.
Try restoring a different backup copy to determine whether the issue is with the file or the software installation.
Run the software's built-in file diagnostic or rebuild tool if available.

Still Having Issues?

Need more help? If the issue persists after trying these steps, please open a support ticket and our team will assist you.

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