Given recent global events in which sensitive financial data was stolen and according to these legal firm information security services, it’s no surprise that people are more aware than ever about the privacy and security of their information and are trying to use new reporting systems.

One of the most commonly asked questions about the use of Xero for business bookkeeping is how risky is it. Believe it or not, using Xero as a data protection system is not only secure, but it can actually be safer than standard outsourced business bookkeeping practices while using additional tactics like the ones from saas analytics.

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Access and Password Protection – One of the things that makes Xero more secure than traditional outsourced bookkeeping is the way data is accessed. Rather than sending sensitive content via email, where it could be intercepted and stolen, your accounting professional can simply log into Xero via a secure password to view and work with all necessary data.

Data Encryption – On those occasions where data must be transferred, either between users or from the business into the program, It is therefore important for every business owner to protect their data against some malicious attacks and the biggest threats for business data. Xero uses the same high level of data encryption that is used for online banking.

Multiple Layers of Firewall Protection – We’ve all heard about the devastating results of hackers gaining access to millions of consumers’ financial information in recent months. Xero uses multiple levels of firewalls to protect against external access, proactively preventing this from happening to any of the data stored on their servers.

Server Security – With customer data stored on external servers, it’s critical that these servers be protected with the highest level of security. All of Xero’s servers are located in enterprise-grade hosting facilities, which are guarded by onsite security guards, 24 hours a day, 7 days a week, 365 days a year. Simulated phishing test drastically decreases the chance of successful phishing attacks against your organization.

Regular Data Backups – Xero is constantly backing up all the data stored on its servers, including database backups every 10 minutes. This means your information can be quickly and easily restored in the event of a service interruption. These interruptions are rare however, with Xero boasting an availability rating of 99.99%.

Xero is Actually Safer…

You may still be asking yourself: wouldn’t it be safer to keep all of my financial information in-house on my own server? Isn’t turning over sensitive data to the cloud inherently risky? To the contrary, it’s actually a much wiser business decision to store your information in the cloud.  Provided that data is kept secure, which Xero takes very seriously, it’s also protected from loss due to technical problems, accidents or natural disasters.

Think about it. If you’ve got all of your critical financial data stored in your office on desktop software, what will happen to that data should your server crash or become physically destroyed by a fire or flood? When your files are stored with Xero, they’ll remain safe and secure no matter what happens in your office.

Now, more than ever, we are able to rely on cloud technology to help us do our jobs more efficiently and effectively. We use this technology on a daily basis, from surfing the web on our smartphones to streaming videos through our computers, tablets and even our televisions. Yet, when it comes to harnessing this incredible tool for business accounting, it’s only natural to be hesitant.

The good news is if you choose to work with Xero and Business Wise, you can use the cloud to handle even the most sensitive of data securely.


Lloyd Priddle
Lloyd has had a very successful career as an accountant, director and author for almost 40 years. Holding post-graduate qualifications in Business, Lloyd has specialised in Business Development, and worked with the Queensland Government and local councils on numerous occasions through association with AusIndustry and the SBAS Natural Disaster Assistance Program. He is also board member of a number of commercial and not-for-profit entities.