Final answer:
The statement is False. It is recommended to have an additional backup of your important business data.
Step-by-step explanation:
The statement that "Because QBO is in the cloud you don't need to back it up" is False. While it is true that QuickBooks Online (QBO) is cloud-based and provides automatic data backup, it is always recommended to have an additional backup of your important business data.
Even though QBO does have measures in place to protect and secure your data, unforeseen events such as system failures, data corruption, or accidental deletion can still occur. Having an external backup ensures that you have a copy of your data that you can easily restore in case of any issues.
In addition to data backup, having an external backup also provides an extra layer of security and safeguards your business against potential data breaches or hacking attempts.