So tell me how insecure/dumb my backup plan is, and how I can improve it. (I learned from hard experience that the AC Backup can not be relied upon to make accurate backups).

I run a Windows 7 Pro machine as my AC server. The only business software on this machine is AC and my PM software, serving 7 clients, and the server does not get used as a client. The server has some shared directories mapped to the clients, but not the AC or PM software directories.

The ImportItems and BACKUP directories (for AC) are backed up to the cloud nightly, and in encrypted form (using CrashPlan), as are the daily backups of my PM database. I have also tested the reliability of the daily, incremental, AC backups and believe them to be reliable. I also, at least twice a week, shutdown the SQL service and copy the AC database files (*.mdf and *.ldf) from my server hard drive to USB thumb drives (rotating), which then are locked in my safe.

I have a disc image of the server from when it was first purchased. So worst case restore scenario is a bare metal restore of the server to the state it was in when received from Dell, followed by re-installation of AC and my PM software, and then restoration of the databases for each (and the PM software installation/restoration would wait until after business hours, as I don't need it to see clinic, and billing could be delayed by a day or two).