Best way to manage and control storage

I see that the home assistant folder just keeps growing overtime. I’m using the hAOS running in a virtual machine.

home-assistant_v2 is 256mb, which I understand is on the small side is there any maintenance I need to do with this?

and then i’ve got the backups folder which just keeps growing and growing. Do I just go in and delete old files every now and then?

Yes. You could automate deleting old ones if you want to. Alternatively, the excellent Home Assistant Google Drive Backup addon will do this for you. And you get both local and offsite backup automated.

Or if you do not want to use Google there are plenty of other ways listed under Option 5 here:

I’m not sure what I should be keeping because synology is also making some backups of the whole virtual machine.

Obviously a few days of backup is enough to make sure I have a copy that loads and runs. What else am I actually trying to back up?