Alex Hartley


Xero Accounting Software: How Secure Is It?

A blue padlock, symbolizing security, on a dark background emphasizes the level of security in Xero Accounting Software.
Xero helps keep your online finances secure

Introduction: The Importance of Security in Online 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.

In the digital age, security is paramount for any organisation that manages sensitive data. This concern is especially pertinent regarding accounting software that handles financial data. Xero, a leading cloud-based accounting software, has multiple layers of protection to ensure the security of its users’ data. But just how secure is Xero? This comprehensive guide aims to shed light on the various security measures implemented by Xero and why it remains a safe choice for business accounting.

Understanding the Need For Security in Accounting Software


The rise of cybersecurity concerns

Cyber security has become an unavoidable issue as we increasingly move our financial activities online. Scams, phishing and hacking attempts are ever-present risks, making the security measures of online accounting tools like Xero all the more critical.

Why financial data is a prime target

Financial data, such as payroll information, customer records, and sales and purchases, is a high-value target for cybercriminals. As a business owner, protecting this sensitive data is not just a best practice; it is a necessity.

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Access Control in Xero: The First Layer of Security


Password protection

The most basic form of security is password protection. Xero requires strong passwords to ensure unauthorised users cannot easily access your account.

Multi-Factor Authentication (MFA)

MFA adds an extra layer of security by requiring a second form of verification in addition to your password. This can be through a mobile phone or an application like Google Authenticator.

Access controls

Xero allows you to add different user access levels, ensuring that employees can only access the information they need for their role. This adds another layer of security by limiting the exposure of sensitive information.

Data Encryption: Making Data Unreadable to Intruders


How Xero uses encryption

Xero uses industry-standard encryption methods to ensure that data is transferred and stored securely. Data encryption converts readable data into an unreadable format that can only be converted using a decryption key.

The role of SSL certificates

Secure Sockets Layer (SSL) Certificates provide a secure channel between your internet browser and Xero’s server, ensuring that the data transferred is encrypted and secure.

Firewall and Server Security: The Fortresses of Data


Firewall protection

Firewalls act as a security system that controls incoming and outgoing network traffic based on an organisation’s security policy. Xero uses robust firewalls to protect its servers and data.

Server security measures

Xero’s servers are in secure data centres with robust physical security controls. These controls are designed to prevent unauthorised personnel from accessing the server locations.

Auditing and Monitoring: Constant Vigilance


Real-time monitoring

Xero has real-time analytics and machine-learning algorithms that monitor user activity. This helps identify any suspicious activity or vulnerabilities.

Audit Trails

Xero maintains detailed user logs that record every transaction and change made to the software. This allows for easy tracking and serves as a tool for internal audits.

Protection from Phishing and Scams


What is phishing?

Phishing is a form of cyber fraud where attackers pose as a legitimate organisation to trick individuals into revealing sensitive information.

How Xero protects you

Xero has security controls to detect phishing emails and scams, protecting you from inadvertently compromising your financial information.

How Xero Handles Data Backup and Recovery


Regular data backups

Xero stores your data in multiple locations to ensure it is backed up regularly. This means that your data is safe and recoverable even in a system failure.

24/7 access and recovery

Xero’s cloud-based architecture ensures your data is accessible 24 hours a day, 365 days a year. In the event of an emergency, data can be recovered quickly.

Compliance and Industry Standards: Xero’s Commitment to Security


Data protection laws

Compliance with data protection laws, particularly for Xero UK, is a top priority for the company. Xero adheres to strict guidelines to ensure the privacy and security of user data. 

Industry-standard compliance

Xero complies with various industry standards and is regularly audited to ensure it meets the highest levels of security compliance.

Conclusion: Is Xero Safe to Use?

With multiple layers of protection, including multi-factor authentication, encryption and robust server security, Xero provides a secure environment for managing your accounting data. Its commitment to complying with industry standards and regulations also adds to its credibility as a secure online accounting platform.
In a world where cyber threats constantly evolve, no system can guarantee 100% security. However, Xero’s extensive security measures provide a formidable defence against most cyber threats, making it one of the most secure accounting software options available today.
So, is Xero secure? The answer is an unequivocal yes. With its robust security measures, you can manage your business accounting with peace of mind, knowing your sensitive financial information is safe.
Alex Hartley
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Xero has multiple layers of protection to ensure that your accounting data and financial records are safe. They use the best technology to protect and ensure the security of your data, including encryption. They also have a two-step authentication process that requires users to enter information such as a password or phone number before accessing the platform.

Xero uses industry-leading technologies to protect data on its platform. All communications between you, Xero and third parties are protected by ‘SSL’ (Secure Socket Layer) encryption. This is the same encryption banks, online shops, and other trusted organisations use when transferring confidential information. There is also a two-step authentication process to help protect your information from unauthorised access.

Yes, it is safe. Xero has a multi-factor authentication system, providing an extra security layer when logging in from a mobile device or computer. The authentication method requires you to enter information, such as a code sent via SMS or email, each time you attempt to log in.

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Take advantage of harnessing the full potential of Xero for your business. Whether you're a start-up, a thriving SME, or a larger enterprise, our Xero-certified accountants are ready to guide you through every step. Please fill out the form below, and let's begin your financial transformation.

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