Xero Security Features: How Secure Is Your Data?

Xero Security Features: How Xero Keeps Your Data Safe

If you store financial data in the cloud, knowing how secure is Xero matters. Xero’s security features use multiple layers of protection — from data encryption and multi-factor authentication to ISO 27001 compliance — designed to prevent anyone but you from accessing your Xero account. Below we break down the security measures that keep your business data secure.

Data Encryption and Cloud Security Infrastructure

Xero uses industry-standard 256-bit TLS encryption to protect your data in transit and AES-256 encryption at rest. Every time you log in to Xero, your connection is encrypted end-to-end. Xero’s cloud-based servers and data centres are hosted by AWS across multiple geographic regions, with firewall protection and round-the-clock monitoring for unusual activity. This cloud security infrastructure means your data is protected by the same standards used by major banks.

Multi-Factor Authentication (MFA)

Multi-factor authentication adds a second layer of security to your Xero login. Even if someone knows your username and password, they cannot access your account without the additional code. You can set up MFA using an authentication app on your smartphone or tablet, or through Xero Verify — Xero’s own MFA app. This extra layer of security is designed to prevent unauthorised access and significantly reduces the risk of data breaches.

MFA is mandatory for all Xero users. To set up MFA, go to your login settings and follow the prompts to link your mobile device.

User Permissions and Access Control

Xero allows you to control who has access to sensitive financial information through granular user permissions. Each team member can be assigned a specific permission level — from invoice-only access to full administrator rights. This means you protect your data by limiting what each person can see and do, keeping your account secure without blocking the people who need it.

Phishing Protection and Online Safety

Phishing remains one of the biggest threats to data security. Xero provides guidance on spotting phishing emails and suspicious login attempts. Use strong, unique passwords (a password manager helps) and never share your login credentials. If you receive an email claiming to be from Xero, check the sender address carefully — Xero will never ask for your password by email. These online safety steps, combined with MFA, help keep your login details and personal and financial data out of the wrong hands.

ISO 27001 Compliance and Data Protection

Xero holds ISO 27001 certification, the international standard for information security management. The platform also publishes SOC 2 reports and security assurance reports, giving businesses and their accountants confidence that robust security controls are in place. For UK businesses, Xero’s data protection practices align with GDPR requirements, meeting compliance obligations around how financial data is stored and processed.

How Secure Is Xero? FAQs

Is Xero safe to use for my business?
Yes. Xero keeps your data secure with encryption, MFA, ISO 27001 certification and continuous monitoring. Like Xero, most cloud accounting platforms now exceed the security of traditional desktop software because updates and patches are applied automatically.

What should I do to secure your data in Xero?
Set up MFA immediately, use a strong password, review user permissions regularly, and stay alert to phishing. These are the most effective ways to secure your data and keep your account protected.

Keep Your Financial Data Secure with JacRox

Whether your data sits in Xero or you are still weighing up online accounting options, our team can help you get the most from Xero’s security features. Get in touch to discuss how we keep your business information safe while making cloud accounting work harder for you.

Developers can also explore the Xero accounting API for custom integrations.

Access your data securely on the go with the Xero mobile app.