Legal - Katalyst Cloud & Business Services, specialists in Xero and WorkflowMax
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The Tax Administration Act 1994 was amended on 2 November 2012 to enable the Commissioner to authorise “persons” (like Xero and other SaaS providers) to hold, on behalf of tax payers, records outside New Zealand.(see Section 22 (2BA)).
In March 2013 the IRD released a Standard Practice Statement “SPS 13/01: Retention of business records in electronic format, application to store records offshore and application to keep records in Maori“.
We are also approved by the IRD to hold our customer’s accounting records on our offshore servers.
The approval can be found here: Third party providers approved to store taxpayer electronic records offshore.
If you would like to learn more about Xero’s security and a blog post about the IRD approving us for offshore record keeping, please see the links below.

Xero Blog: Xero has offshore data storage approval for NZ customers

Our software has never been breached and we have never lost any customer data. We invest heavily to protect your sensitive financial information against unauthorised access and system failures, ensuring your data is guarded to the highest level.

Xero Website: Security in Xero

See below from Xero Support (22/02/17):

We don’t have a dedicated page that explains our recommended limits but for optimum system performance, we recommend maximum volumes of around 1000 Sales Invoices, 1000 Purchase Bills and 2000 Bank Transactions per month.

It’s difficult for us to exactly define the number of invoices that will cause performance reduction, as this depends on the frequency of invoicing during the month, variability of amounts and the frequency of sales tax reporting requirements. We find these recommended volumes are a comfortable limit for most small businesses.

Xero are constantly updating their architecture and platform, so data limits will gradually improve over time – but they are also limited to the internet speed available locally.

Our shredder is a medium security (P-3) shredder that shreds paper into unreadable Cross-cut sized particles (sized 4 x 50mm) making it ideal for sensitive and confidential data.

Click to see our Insurance Policy Schedule Insurance Policy Schedule.

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