Information security is now more important than ever for Malaysian companies using cloud-based accounting software like Xero. There are confidential financial matters. Keeping them confidential helps ensure the continuance of trust and continuity of compliance with regulations like Malaysia’s Personal Data Protection Act (PDPA).

Why Security in Cloud Accounting Matters

Nowadays, cyber-attacks are increasing. Phishing, ransomware, and account takeovers are common. They can cause financial loss, damage to reputation, and legal issues. Your enterprise is at risk if your data is not protected.

Remote work has imposed a need for strong security. Staff members are accessing financial records from remote locations and computers. Illicit individuals can gain entry without valid protections. Security controls have become a greater necessity because of that.

For example, Xero boasts a strong security system. It keeps data both in transit and at rest encrypted. This keeps strangers from reading your stuff. Xero features real-time monitoring. It alerts suspicious behavior beforehand, which prevents breaches.

Therefore, these features defend Malaysian companies in the cloud. They render information loss and illegal access less probable. They also help with compliance with regional laws.

It is worth it for your company to spend money on this kind of security measure. It secures your financial records. It keeps your operations safe. It also creates trust among your partners and customers, in an era of digitalization, security matters. It allows your enterprise to develop securely and in a confident manner.

Advanced Security Features in Xero

Xero offers a range of security tools to protect your accounting records and users.

Multi-Factor Authentication (MFA)

Multi-factor authentication, or MFA, makes security more robust by requiring multiple types of evidence from different categories. It is harder for hackers to access accounts even if the password has been taken.

Something they know: The most common form of verification but easy to get by others, is a PIN or password.
Something they have: It may be some physical device, such as an authenticator app. Microsoft Authenticator, Google Authenticator, or Authy-like apps generate codes for single use that change very rapidly. Some security keys or hardware tokens can also be utilized to accomplish the same.
Something they are: Biometric data of users (facial recognition, fingerprints, voice).

Granting MFA to be activated will make sure that even if an attacker has taken a password, it’s not possible for him to access the account without the second factor. It adds an extra layer of protection. MFA is enforced by Xero on its users. This is especially true for people handling sensitive company or client information. MFA stops malicious access and defends your financial information. It also gives you a feel-safe factor that your information is safer.

Real-Time Security Notifications and Login History

Login logs are an audit trail. They create a record of user access. Regular investigation assists in confirming legitimate behavior. Unfamiliar devices or geos can be blocked or labeled. Multi-factor authentication may serve to boost the security of organizations. Suspicious accounts may be frozen, and swift responses to threats can be achieved.

For example, cloud accounting software, Xero can track all login attempts. It tracks information such as the device, location from where the attempt was made, IP address, and time. When it detects a login from an unfamiliar device or unknown location, Xero issues an alert. The users can confirm whether the login was genuine or react on time if it wasn’t to respond.

Administrators and owners may observe in-depth login records. These can include timestamps, devices, IP addresses, and geolocation. Monitoring of failed logins is important. Multiple sequential failures for a single IP or device can indicate an attack. Locking accounts or applying extra security measures is the action organizations can take. Suspicious access from other areas also generates alerts.

Login monitoring prevents insider threats. Users understand their actions are being watched. This creates caution. It also creates reporting suspicion promptly. All these security functions defend sensitive information. They create a culture of accountability and watchfulness.

Custom User Permissions and Access Control

Xero enables granular user access control by distributing particular roles and permissions to each user:

Bank reconciliation access only
View-only financial reports
Payroll admin rights
Billed rights with no bank visibility

As your firm expands, it might be difficult to handle multiple services or users. Xero’s flexible permissions allow secure scaling. You are able to have access levels for new employees. As responsibility changes, you are able to easily alter permissions. This secures sensitive information. It also allows for streamlined workflows by allowing departments to operate independently. Overall, these permissions allow you to stay in control. They allow regulation and security as your company expands.

Securing Third-Party Integrations

More can be drawn by sellers from Xero when linked to third-party applications like Hubdoc, Talenox, or Shopify. Third-party connection protection must be a concern.

Xero provides a list of integrated applications to every user. This provides an easy solution for you to manage applications that have access to your record. Admins retain the right to revoke access to any software at any given time. This gives you the ability to stop unwanted or outdated integrations.

Furthermore, Xero implements OAuth 2.0 and safe APIs. These systems provide token-based authentication. They secure data in transmission between Xero and third-party apps. Always check external programs adhere to regular security standards before issuing access. This is essential to avoid safety threats.

Refer to the blog-> Hubdoc: Your Best Partner to Capture Bill and Receipt | Xero

Password Management Best Practices

Strong password practices are still necessary, even with MFA in place. Below are the ways to keep passwords safe.

A fresh password must be created for Xero. Sharing passwords from other accounts is risky.
Passwords must be changed every 90 days. Frequent changes minimize unauthorized use.
Users can be encouraged to utilize a password manager, such as 1Password or Bitwarden. They assist in generating and safely storing strong passwords.
Educating your employees about password security is vital. Highly educated employees are less susceptible to human error.

Following these practices improves your overall safety. It also helps identify and prove your username security and secure sensitive financial information.

Monitoring Devices and Sessions

Device and session monitoring of devices logged into your Xero account is an important protection feature. You can see all current sessions for all users. This lets you see who’s online and where they’re accessing from. If you see any suspicious behavior, you can force a logout of the like. This disables unauthorized access immediately.

On password change, it is a good practice to re-authenticate users. This ensures that only legitimate users remain accessible. This process is especially useful if an employee leaves the company or misplaces their computer. You can simply degrant access and lock away your information.

A systematic review of physical access to your account strengthens your safety and reduces exposure to possible risks.

Secure Financial Data with Encryption

All information in transit and at rest is encrypted by Xero. Enhanced security measures such as TLS 1.2 and higher are used. This encryption keeps your company information private. It prevents unauthorized viewing of confidential information.

Transactions and reports stay safe from interception. This relevance does not allow information to be read or modified during transmission. Encryption creates trust with your stakeholders and customers. They know their financial information is secure.

Also, encryption is most important when it comes to interacting with auditors or banks. Encryption makes sure you comply with security standards. Overall, strong encryption measures protect your financial information and guarantee its integrity.

Contact Support for Any Security Issues

Always be on your guard. Call assistance immediately if you have a security concern. Being speedy can prevent further problems and assist in safeguarding your information. Here is the action that you can take when facing suspicious activity.

Xero offers 24/7 security issue resolution support. Get in touch with Xero’s team at any time.
Visit the Xero Security Help Centre to get valuable information. The center provides security best practice information and FAQs.
Report suspicious behavior or phishing attacks right away. Reporting quickly locks your account and others. You are able to do this from your Xero login.
In case of account recovery or hacking of your account, reach out to support immediately. Our support team stands ready to identify and resolve your safety concerns.
If you see suspicious logins or have reason to believe your credentials have been stolen, utilize the “Contact Support” feature. You can initiate this from the application or site.

More Help for Malaysian Businesses

Malaysian SMEs want to improve digital safety. Several important steps can be accomplished.

Conduct regular internal audits. Look at who has access to confidential information. Check how devices are being used. These audits detect vulnerabilities in advance.
Train employees regularly. Train employees to recognize phishing e-mails. Illustrate how social engineering occurs. Trained employees will prevent most digital protection issues.
Limit access to financial information. Confidential information must be seen only by individuals who must see it.
Security is not an installation for one-time use. It is ongoing. There needs to be ongoing monitoring. Update policies and keep training employees.

Proactiveness and attentiveness safeguard digital assets. A culture of protection is not developed overnight. It is something every company has to invest time in.

Final Thoughts

As a secure accounting program, Xero gives you more than just mere number juggling to do. It looks after your safety with advanced features that assist in guarding your financial information. Xero lets you manage who can view or edit sensitive information, allowing only authorized users to make the necessary changes. This reduces the chances of an unauthorized entry and record loss.

Regardless if you are a small firm owner or a financial professional in Malaysia, Xero is with you as you strive to stay in compliance with country requirements. It also keeps your finances and money safe. When you use Xero, you are free to trust your customers by showing them that their financial information is secure.

With the digital age, protection is of utmost importance. Xero’s robust protection gives peace of mind. You can focus on company growth with confidence knowing your financial information is safe.

Require Help with Xero Setup and Security?

Caltrix offers guidance in helping Malaysian companies set up Xero. We care about establishing proper user permissions to limit access. With this, only the people who should view or change sensitive information are permitted to do so.

We also assist in secure app integrations. We securely integrate Xero with other apps that you are already using on a day-to-day basis. This keeps your record safe. Apart from this, we assist you in getting completely e-invoicing compliant. This keeps your company compliant with local regulations seamlessly.

We are working hard to give you a robust and secure accounting platform. With our assistance, you will be able to manage your financial information easily. You can also reduce security loopholes. Let us handle the setup so you can focus on growing your enterprise. Contact us today to start designing a secure Xero environment for your particular needs.

Check on the blog-> Digital Transformation with Xero: A Guide to Moving Your Business to the Cloud

About Xero

Xero is a global small business platform with 4.4 million subscribers. Xero’s smart tools help small businesses and their advisors to control core accounting functions like tax and bank reconciliation, and complete other important small business tasks like payroll and payments. Xero’s extensive ecosystem of connected apps and connections to banks and other financial institutions provide a range of solutions from within Xero’s open platform to help small businesses run their business and control their finances more efficiently.

Frequency Asked Questions (FAQs)

1. How does Xero verify the identity of a user during sign-in?

Xero uses methods like multi-factor authentication (MFA). MFA authenticates a user’s identity through several verification tests. It ensures the individual signs in, especially from another hardware or location. This increases protection against unauthorized sign-ins.

2. How does Xero monitor location data upon sign-in attempt?

Xero tracks location information such as geographic location and network. In case of a sign-in from a strange location, new device, phone, or network, Xero sends respective security notifications. These notifications help you verify the sign-in. They help you respond if needed.

3. What if I notice a sign-in from a new device or strange location?

You can view your login history. If sign-in is not available or unknown, access may be denied. You can suspend the account if you need to. These are actions intended to protect the identity of the user and prevent unwanted access.

4. What if I suspect unauthorized access to my account?

You need to check your login history right away. Remove access for any irrelevant or suspicious devices. Both MFA and password changes are good solutions. These can verify your identity and secure your account.

Alfred Ang

Alfred has led the company in helping over 500 SMEs successfully transition to digital platforms. With expertise in cloud accounting software implementation and other tech stacks. Alfred empowers businesses to access real-time, accurate financial data for informed decision-making. As a Chartered Accountant (CGMA, ACMA, and MIA member), he is driven by the mission to streamline traditional accounting processes. Alfred’s accomplishments include winning the Xero Award for Medium Accounting Partner of the Year in 2024.

Xero Advanced Security Features for Malaysian Businesses