Xero
Accounting
Experts

Contents show

JacRox are Xero Gold Partners

Experienced Chartered Accountants

About
Latest Posts

Alex Hartley

JacRox's financial storyteller, Alex simplifies finance intricacies through Xero Accounting.

Do Not Forget Security When Using Xero Cloud: A Comprehensive Guide

Introduction: The Importance of Security in Cloud Accounting

Welcome to JacRox, a brand division of Jack Ross Chartered Accountants in Manchester. We are dedicated to offering expert Xero services to a wide variety of clients, from sole traders to large corporations. If you are in need of state-of-the-art cloud accounting software, use the contact form on the right and one of our JacRox team will be in touch to discuss next steps.

Welcome to this JacRox/Xero blog where we discuss an essential aspect of cloud accounting—security. As more small and medium-sized businesses move to the cloud, the need for robust security measures has never been more critical. When you use Xero, you are not just using cloud accounting software; you are using a platform that takes your security seriously.

Authentication: Your First Line of Defence

Before you can even access your Xero account, you will encounter the authentication process. Xero employs two-step authentication (also known as 2FA) as a standard security measure. It significantly reduces the risk of unauthorised access to sensitive data.

Two-Step Authentication: How It Works

Two-step authentication combines something you know (your password) with something you have (an authentication device like a phone or tablet).

Password Security

Choosing a strong password for each site you use is the first step in securing your online accounts. It is also good practice to use password manager software to keep track of your different passwords.

Authentication Code

The second layer in two-step authentication is a unique code generated by an app on your smart device. You will need to enter this code along with your login credentials to log in to Xero.

Potential Security Threats: What to Be Aware Of

Even the safest online platforms are susceptible to security threats like phishing and scam attempts.

Phishing and Scam Attempts

Always be cautious when you receive an email asking for your Xero login email address or password. Verify the sender and do not click on any attachment or links if you have forgotten who the sender is.

Information Security Best Practices

Encryption: Ensure that your internet connection is secure.
Multi-Factor Authentication (MFA): Use multiple logins and authentication methods.
Data Storage: Make sure sensitive information is stored securely.

Workflow and User Access: Keeping Your Data Safe

One of the advantages of using Xero is the ability to set user roles where access is limited. This feature ensures that only authorised personnel have access to sensitive financial data.

Xero’s Built-In Security Features: More Than Just Authentication

Real-Time Monitoring

One of the standout features when you use Xero is real-time monitoring of your account. If there is unusual activity, such as multiple logins from different locations, Xero’s system will flag it. This level of scrutiny significantly reduces the risk of a security breach.

Secure Data Transmission

All financial data you send or receive in Xero is encrypted using advanced encryption algorithms. Whether you are looking at bank feeds or sending an invoice, your sensitive information remains protected.

Regular Security Audits

Xero undergoes frequent security audits to ensure that it meets the highest standards of data protection. If you are a small business owner concerned about the security of using cloud accounting software, rest assured that Xero is regularly updated to guard against new security threats.

Backup and Recovery

Should the worst happen and your data is compromised, Xero provides robust backup and recovery options. With these features, you will be able to restore your organisation’s financial data quickly, allowing you to get back to business with minimal disruption.

Conclusion: Best Practices for Safe Online Use of Xero

Do not forget, when you use Xero, you will be able to enjoy all the benefits of cloud accounting while knowing that your data is secure. From strong authentication methods to best practices for information security, Xero has you covered. Contact JacRox using the form below and one of our Xero specialists will be in touch.