XERO Cloud Accounting – Is it Secure and Reliable?


It’s safe to say that Cloud Software has completely changed the dynamics of our accounting processes delivering high performance and flexibility to users within a web-based environment.

The Cloud makes essential information available to those who need it, when they need it, wherever they are. However, whilst most businesses are embracing the Cloud we are finding a common theme with people asking; Is the Cloud safe and secure to use? And is it actually reliable?

To address some of those concerns we take a closer look at Xero’s commitment to providing customers with multiple layers of protection for their personal and financial information and how they are achieving it:

1. You control access As a Xero customer you have the flexibility to invite unlimited users into your account to collaborate on your data, and the person that holds the subscription has control over who has access and what they are able to do. Xero customer support staff cannot access your information unless you invite them to help.

2. User authentication Xero provide standard access to their software through a login and password. In addition, they offer the option of using two-step authentication. This provides a second level of security for your Xero account. It means you’re also asked to enter a unique code generated by a separate authenticator app on your smartphone. We recommend you use two-step authentication as it reduces the risk of your Xero account being accessed if your password is compromised.

3. Data encryption All data is encrypted that goes between you and Xero using industry-standard TLS (Transport Layer Security), protecting your personal and financial data. Your data is also encrypted at rest when it is stored on Xero servers, and encrypted when transferred between data centres for backup and replication.

4. Network protection Xero takes a “defence in depth” approach to protecting their systems and your data. Multiple layers of security controls protect access to and within the environment, including firewalls, intrusion protection systems and network segregation. Xero’s security services are configured, monitored and maintained according to industry best practice. They partner with industry-leading security vendors to leverage their expertise and global threat intelligence to protect their systems.

5. Secure data centres Xero’s servers are located within enterprise-grade hosting facilities that employ robust physical security controls to prevent physical access to the servers they house. These controls include 24/7/365 monitoring and surveillance, on-site security staff and regular ongoing security audits. Xero maintains multiple geographically separated data replicas and hosting environments to minimise the risk of data loss or outages.

6. Security monitoring Xero’s security team continuously monitors security systems, event logs, notifications and alerts from all systems to identify and manage threats.

7. Security assurance Xero has produced a Service Organization Control (SOC 2) report. The report is the result of an independent auditor's examination of Xero's cloud based accounting system relevant to the Trust Services Principles and Criteria for Security, Availability, and Confidentiality.

As you can see Cloud Accounting is evolving at a rapid rate and the security of data stored on Cloud Software is taken very seriously. At Transcend Accounting we regularly attend conferences and seminars to ensure we are always up-to-date on the latest changes and how these can benefit our clients.

If you’d like to learn more about Cloud Based Accounting and how it could streamline your business finances contact us now on 0404 033 464 or click here to email.

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