Bert - that clears it up a lot for me. I am using GoodSync to back up my folders etc locally and remotely. But I was backing up AC's .enc with all the imported items which is growing too fast.
So just to confirm I am going in the right direction ....I can set my AC back up without the imported items (the enc file is really small now) but back up the other folders separately using a backup software like GoodSync.