A NAS is the most cost-effective centralised storage solution for a small business. It can provide shared file storage, workstation backup, remote access, and data redundancy; suitable user capacity and total cost depend on the selected NAS, workload, storage configuration, software requirements, and support needs. This guide covers setting up a NAS for business use from scratch: network configuration, shared folder structure, user accounts and group permissions, Windows SMB drive mapping for workstations, Time Machine backup for Macs, and remote access for staff working from home. Both Synology DSM and QNAP QTS are covered where configuration differs.
In short: Assign the NAS a static IP → create shared folders for each department or project → create user groups and individual user accounts → assign groups to folders with appropriate permissions → map drives on Windows workstations via Group Policy or login script → configure Hyper Backup or Hybrid Backup Sync for daily offsite backup.
Step 1: Network Configuration
Before configuring the NAS, establish stable network addressing:
- Assign a static IP to the NAS. On your router/DHCP server, create a DHCP reservation for the NAS MAC address so it always receives the same IP. Alternatively, set a static IP in the NAS network settings (e.g.
192.168.1.10). A static IP ensures mapped drives and backup jobs always reach the NAS - Set a hostname. Give the NAS a meaningful name (e.g.
FILESERVER). This hostname is used in UNC paths:\\FILESERVER\Finance. On Synology: Control Panel → Info Center → Server Name. On QNAP: Control Panel → System → General Settings - Create a DNS entry if your network has a DNS server (router-based or Windows Server DNS). Map the chosen hostname to the NAS IP so clients can reach it by name
- Configure network bonding if you have a 2.5GbE or 10GbE switch and the NAS supports it. For most SMB environments with 1GbE networking, bonding two 1GbE ports provides failover without adding throughput for individual connections
Step 2: Storage Pool and Shared Folder Structure
Design your shared folder structure before creating folders. It is harder to reorganise later.
Recommended structure for a small business:
Company. Read access for all staff, read/write for management. General company documents, templates, policiesFinance. Read/write for Finance team only, read for managementProjects. Subfolder per project, permissions managed per project teamHR. Restricted to HR and management onlyIT. IT admin onlyStaff. Personal folder per user, accessible only by that user and IT adminBackups. Where workstation backups are stored. Restricted to IT admin (users should not modify their own backups)
Create each shared folder in the NAS control panel. On Synology: Control Panel → Shared Folder. On QNAP: File Station → Create New Shared Folder. Enable the recycle bin on each shared folder. This can help recover accidentally deleted files.
Step 3: User Accounts and Groups
Create user groups for each permission category, then assign users to groups. Do not assign permissions directly to individual users. This makes future permission management far simpler.
Example groups: staff (all employees), finance (finance team), management (managers and directors), it-admin (IT administrators).
On Synology: Control Panel → Group → Create. On QNAP: Users → Groups → Create.
Create user accounts for each employee. Assign each user to the appropriate group(s). A finance employee might be in both staff and finance.
Then assign group permissions to each shared folder:
Company→staff: Read,management: Read/WriteFinance→finance: Read/Write,management: Read/Write,staff: No AccessHR→hr: Read/Write,management: Read/Write (no access for other groups)
For environments with an existing Active Directory domain, join the NAS to the domain and use AD groups instead of local NAS groups. See the Windows file server migration guide for domain join steps.
Step 4: Map Drives on Windows Workstations
Windows workstations access NAS shares via mapped network drives. Options for deploying drive mappings:
Group Policy (domain environments): User Configuration → Preferences → Windows Settings → Drive Maps. Create a mapped drive per share, targeting the UNC path. Apply to the appropriate AD group (e.g. Finance drive map applies only to the Finance security group). Users receive drive mappings automatically at logon.
Login script (workgroup environments): Create a logon.bat or PowerShell script run at user login:
net use F: \\FILESERVER\Finance /persistent:yes
net use G: \\FILESERVER\Company /persistent:yesManual setup: For small teams, configure drive mappings manually on each PC: File Explorer → This PC → Map Network Drive. Enter the UNC path, check Reconnect at sign-in, use credentials if prompted.
Step 5: Configure Workstation Backup
Back up workstations to the NAS to protect against PC hardware failure and accidental deletion:
Synology Active Backup for Business (recommended for Synology NAS): Agent-based backup of Windows PCs. Install the Active Backup for Business Agent on each protected PC, then manage backup tasks centrally from the NAS. Set up under Active Backup for Business in the Package Center. Backs up to the Backups shared folder.
QNAP NetBak Replicator: Requires installing a client on each Windows PC. Creates scheduled backup to a QNAP share.
Windows Backup / File History: Configure Windows File History on each PC to back up to a network share on the NAS. Less centralised than Active Backup for Business but works without additional software.
Mac Time Machine: Create a shared folder on the NAS with Time Machine support enabled (both Synology and QNAP support this). Macs discover the NAS as a Time Machine destination automatically.
Step 6: Remote Access for Staff
Staff working from home need secure access to NAS files. Options from most to least recommended:
- VPN to office network: Most secure. Staff VPN to the office network (pfSense, OpenVPN, WireGuard on a router), then access the NAS at its internal IP as if in the office. No NAS ports need to be internet-exposed. Requires a VPN-capable router or firewall at the office. This is the recommended approach for business environments
- Synology QuickConnect / QNAP myQNAPcloud: Remote-access services that may use direct or relayed connections, depending on the platform, enabled services, and network environment. Relayed connections can have additional latency. Suitable for occasional access to small files
- WebDAV over HTTPS: Both platforms support WebDAV. A file access protocol that works over HTTPS port 443. Less intuitive than mapped drives but works through most firewalls and corporate proxy configurations
🇦🇺 Australian Buyers: NAS Recommendations for Small Business
Recommended NAS for 5-20 user small business (March 2026 AU pricing):
- Synology DS425+ (verify current AU pricing): Active Backup for Business, DSM's mature AD integration, and Hyper Backup for offsite. Synology rates the DS423+ for up to 10 FSCT-based SMB connections with RAM expansion; real capacity depends on file sizes, concurrency, storage, networking and other running services. 3-year warranty, local Synology AU support
- Synology DS925+ (verify current AU pricing): AMD Ryzen V1500B, quad-core at 2.2GHz. Better multi-core performance for larger user counts (20-30 simultaneous) or file-intensive workflows (design, engineering files)
- QNAP TS-464 (~$989): Good for environments wanting hardware expansion options (PCIe 10GbE). QTS AD integration is mature. Hybrid Backup Sync covers cloud backup needs
Budget for NAS drives separately and verify current Australian pricing for the exact compatible WD Red Plus or Seagate IronWolf model and quantity, as drive pricing varies materially. Factor in UPS protection. A power event during a write can corrupt NAS data. A basic UPS ($150-250 AUD) is worth including in the total cost.
See the best NAS Australia guide and the UPS Sizing Calculator for hardware planning.
Security Hardening After Initial Setup
A freshly configured business NAS has several security gaps that need addressing before it holds production data. First: disable the "admin" account and create a named administrator account with a strong password and two-step verification enabled. Second: enable the Synology Firewall (Security > Firewall) and block all ports that are not explicitly needed. For a business NAS that is not publicly accessible, the firewall can block all inbound traffic except from the office LAN subnet.
Third: enable snapshot protection for production shared folders where the NAS model, filesystem and volume type support it. Ransomware that encrypts a NAS typically does so through a compromised Windows workstation that maps the NAS share. On Synology, manage supported shared-folder snapshots through Snapshot Replication; on QNAP, use Storage & Snapshots or File Station's Snapshot Manager where supported. Snapshots provide point-in-time recovery versions that ordinary SMB clients cannot overwrite. Set snapshots to run every 4 hours and retain at least 24 versions. Snapshots can shorten ransomware recovery, but restoration time depends on the amount of data, recovery method, validation requirements and system performance.
Backup Architecture: 3-2-1 Applied to a Business NAS
A NAS used as primary storage is not, by itself, a backup of that data and needs independent backup copies. A NAS used as a backup target is one component of a broader backup architecture. The 3-2-1 backup rule for a business NAS is: copy 1 (the NAS itself), copy 2 (a local backup target, typically an external drive or a second NAS in the same office connected via USB or LAN), copy 3 (offsite, either cloud backup via Hyper Backup to Synology C2 or Backblaze B2, or a physical drive stored off-premises).
Synology Hyper Backup to Backblaze B2 can be a cost-effective offsite option, but compare current storage, transaction, restore-egress, currency and support costs against other compatible destinations. Backblaze currently lists B2 from US$6.95 per TB per month. Standard accounts receive free egress up to three times average monthly storage; unlimited partner egress through Cloudflare applies to transfer to or through its CDN and should not be assumed for every NAS restore workflow. The AUD cost of a 2TB offsite backup varies with Backblaze's current USD rate, exchange rate, tax, stored byte-hours and any chargeable usage.
Total Cost of Ownership: What a Business NAS Actually Costs
Business NAS Total Cost of Ownership (5-Year Estimate, AU)
| 2-bay starter (DS225+) | 4-bay mid (DS925+) | 4-bay business (DS925+) | |
|---|---|---|---|
| NAS hardware | ~$540-$640 | ~$1,000-$1,100 | ~$1,000-$1,100 |
| 2x or 4x 8TB NAS drives | verify current AU pricing for the exact compatible drive model and required quantity | verify current AU pricing for the exact compatible drive model and required quantity | verify current AU pricing for the exact compatible drive model and required quantity |
| 5-year electricity (QLD rates, 24/7) | calculate from the selected model's measured power use, installed drives, expected access/hibernation duty cycle and current business electricity tariff | calculate from the selected model's measured power use, installed drives, expected access/hibernation duty cycle and current business electricity tariff | calculate from the selected model's measured power use, installed drives, expected access/hibernation duty cycle and current business electricity tariff |
| UPS (recommended) | ~$180 | ~$200 | ~$200 |
| Offsite backup (B2, 2TB) | recalculate using the current USD storage rate, AUD exchange rate, tax and expected usage | recalculate using the current USD storage rate, AUD exchange rate, tax and expected usage | recalculate using the current USD storage rate, AUD exchange rate, tax and expected usage |
| 5-year total | ~$2,255-$2,435 | ~$3,130-$3,390 | ~$3,130-$3,390 |
| Per user per month (10 staff) | ~$3.76-$4.06 | ~$5.22-$5.65 | ~$5.22-$5.65 |
Related reading: our NAS explainer.
See also: our complete Synology NAS Australia guide.
See also: our complete QNAP NAS Australia guide.
See also: our full Small Business Storage and Backup guide.
How many users can a small business NAS support simultaneously?
Published capacity differs by model and test method. Synology rates the DS423+ for 10 FSCT-based SMB connections with RAM expansion, while QNAP's TS-464 figures use different connection and throughput tests; size from workload-specific vendor data rather than a shared user-count range. For 30+ simultaneous users or workflows with very large files (video editing, CAD), a more powerful CPU (AMD Ryzen-based models like DS925+) and 10GbE networking become relevant. Suitability for a 5-20-person office depends on simultaneous activity, file sizes, storage, networking and other NAS services; check workload-specific limits for the exact model.
Do I need a Windows Server if I have a NAS?
For file sharing, backup, and basic remote access: no. A NAS replaces Windows Server's file server role at much lower cost and complexity. What still requires a Windows Server (or equivalent): Active Directory domain services (some supported Synology and QNAP configurations can provide Samba-based domain-controller services through Synology Directory Server or QTS Domain Controller; check model and package support), DNS and DHCP servers (router can handle these for small sites), application servers (SQL Server, IIS, line-of-business apps). For a small business that currently uses Windows Server only as a file server, replacing it with a NAS is a well-established approach that reduces licence costs, power consumption, and management overhead.
What RAID level should a small business NAS use?
RAID 5 for 4-bay configurations (1 drive of parity, survives 1 failure), RAID 6 for 5+ bays where double fault tolerance is required. For a 2-bay NAS, use a supported one-drive-redundancy configuration such as RAID 1 or two-drive Synology SHR. For a four-drive array of equal-size drives, RAID 5 provides single-drive fault tolerance and about 75% of raw capacity; whether RAID 5, SHR-1 or another supported layout is appropriate depends on capacity, recovery and fault-tolerance requirements. Combine RAID with regular offsite backup. RAID does not replace backup.
How do I restrict staff from seeing folders they shouldn't access?
Using the Windows Access Based Enumeration (ABE) feature on NAS SMB shares. With ABE enabled, users only see folders they have permission to access. HR folders don't appear in File Explorer for non-HR staff. Configure the platform's folder-visibility setting separately from ACL permissions. On Synology, enable the applicable options to hide shared folders or subfolders from users without permission; on QNAP, use ABSE for shared-folder visibility and ABE for files and subfolders. Additionally, configure the NAS group permissions so non-permitted groups have No Access (not Read). No Access prevents access; enable the platform's ABE/ABSE or equivalent hide-unauthorised-folders setting if inaccessible folders must also be hidden from view.
Is a NAS secure enough for business data?
Yes, with correct configuration. Key security practices: (1) Do not expose the NAS admin interface directly to the internet. Access via VPN only. (2) Keep DSM/QTS updated. Both vendors issue security patches regularly. (3) Disable unused services (SFTP, FTP, Telnet). (4) Enable two-factor authentication on admin accounts. (5) Use a dedicated NAS admin account separate from your daily-use account. (6) Enable login failure lockout. Whether a NAS is appropriate for sensitive business data depends on the threat model, access controls, encryption, patching, monitoring, backup and recovery, and any applicable legal, contractual or insurance requirements.
How many simultaneous users can a small business NAS support?
Simultaneous-user capacity varies by NAS model, memory, storage, network configuration, file sizes and workload; use workload-specific vendor limits and testing for the selected model. Heavy use cases (large video file transfers, simultaneous database access) may bottleneck at higher user counts. For larger or busier deployments, faster networking and SSD storage or cache may help when testing identifies network or random-I/O bottlenecks; SSD cache does not materially improve every workload.
Should a small business NAS be connected via Ethernet or WiFi?
Always Ethernet. A NAS handling file sharing for multiple staff must be on a wired connection to the switch. WiFi introduces variable latency, throughput drops under interference, and dropout risk during file transfers. The NAS should be plugged directly into the office switch or router via an Ethernet cable. Client workstations benefit similarly from Ethernet over WiFi for consistent transfer speeds.
Can a small business NAS run accounting software or other applications?
Some NAS platforms support running applications via Docker containers or virtual machines. Synology DSM offers Container Manager and Synology Virtual Machine Manager on supported models; QNAP offers Container Station and Virtualization Station on supported QNAP models. However, running a production accounting application on NAS hardware is generally not recommended: Application-server suitability depends on the NAS model, CPU, memory, storage, application requirements and vendor support; combining file and application services on one device also creates a shared failure domain. A separate dedicated server or cloud SaaS is the better choice for line-of-business applications.
Calculating how much NAS storage your business needs based on user count, file types, and growth rate? The NAS Sizing Wizard provides a tailored storage estimate.