How to Enable 2FA/MFA on Your Xero Account: A Step-by-Step Guide

 

Enabling Two-Factor Authentication (2FA) or Multi-Factor Authentication (MFA) on your Xero account is one of the best ways to protect your sensitive financial data. 2FA/MFA adds an extra layer of security by requiring not just your password, but also a code from your phone or another device. This makes it much harder for hackers to access your account, even if they know your password. If you need expert help or a readiness assessment, consider reaching out to OCD Tech.

• Log in to your Xero account using your usual email and password at the official Xero login page.
• Go to your account settings by clicking your initials or profile picture in the top right corner, then select Account or Profile.
• Find the Two-Step Authentication section. This is sometimes called "Multi-Factor Authentication" or "2FA." Click on the option to set it up.
• Download an authenticator app on your smartphone. Popular free options include Google Authenticator, Microsoft Authenticator, or Authy. These apps generate the codes you’ll need for logging in.
• Scan the QR code shown on your Xero screen using your authenticator app. Open the app, tap the "+" or "Add" button, and point your phone’s camera at the QR code. This links your Xero account to your phone.
• Enter the 6-digit code from your authenticator app into Xero to confirm the setup. The code changes every 30 seconds, so use the current one displayed.
• Save your backup codes. Xero will give you a set of backup codes. Write these down or save them in a safe place. You’ll need them if you lose access to your phone.
• Complete the setup by following any final prompts. From now on, you’ll need both your password and a code from your authenticator app to log in.
• Test your new login process by logging out and back in. Make sure you can access your account using your password and the code from your app.
• If you have any trouble or want a professional review of your security setup, OCD Tech can help with consulting and readiness assessments.

Key terms explained:

• 2FA/MFA: Two-Factor or Multi-Factor Authentication. Adds a second step to your login, usually a code from your phone.
• Authenticator app: A free app that generates secure codes for logging in. Examples: Google Authenticator, Authy.
• Backup codes: Emergency codes to access your account if you lose your phone.

Why enable 2FA/MFA on Xero?

• Protects your financial data from hackers, even if your password is stolen.
• Meets security best practices and may be required by your company or industry.
• Gives you peace of mind knowing your business information is safer.

For more help with cybersecurity or readiness assessments, contact OCD Tech.

 

Best Practices and Tips for Securing Your Xero Accounting Software

 

Securing your Xero account is essential for protecting sensitive financial data. As cloud accounting software, Xero stores valuable information that could be targeted by cybercriminals. Following proper security practices helps safeguard your business finances and customer information.

Creating Strong and Unique Passwords

 

A robust password policy is your first line of defense against unauthorized access:

• Use a password that's at least 10 characters long, combining uppercase letters, lowercase letters, numbers, and special symbols.
• Avoid using easily guessable information like your name, business name, birthdate, or common words.
• Create a unique password specifically for Xero – never reuse passwords from other accounts.
• Consider using a password manager like LastPass, 1Password, or Bitwarden to generate and store complex passwords securely.
• Change your Xero password regularly, ideally every 90 days.

Managing User Access and Permissions

 

Controlling who can access your Xero account and what they can do is crucial:

• Grant the minimum level of access necessary for each user to perform their job functions.
• Regularly review user accounts and remove access for former employees or contractors immediately upon their departure.
• Assign role-based permissions using Xero's user roles (Standard, Invoice Only, Read Only, etc.) based on job responsibilities.
• Consider consulting with OCD Tech for a comprehensive access management assessment if you're unsure about optimal permission settings.
• Create individual user accounts rather than sharing login credentials among multiple employees.

Secure Device and Network Practices

 

The devices and networks you use to access Xero can create security vulnerabilities:

• Keep your computer's operating system, browsers, and antivirus software up-to-date with the latest security patches.
• Avoid accessing Xero on public computers or using public Wi-Fi networks. If necessary, use a reputable VPN service.
• Log out of Xero completely when you're done using it, especially on shared devices.
• Enable firewalls on devices used to access financial information.
• Consider implementing endpoint protection solutions as recommended by security experts at OCD Tech.

Email Security and Phishing Awareness

 

Many security breaches begin with deceptive emails:

• Be suspicious of unexpected emails claiming to be from Xero, especially those requesting login credentials or containing urgent security warnings.
• Verify the sender's email address carefully – legitimate Xero communications come from domains ending in @xero.com.
• Never click on suspicious links in emails – instead, navigate directly to Xero.com through your browser.
• Report suspicious emails to Xero's security team at [email protected].
• Educate all staff members about phishing threats and how to identify them.

Regular Account Monitoring

 

Keeping a watchful eye on your Xero account can help detect unauthorized access:

• Review your Xero account activity log regularly to check for suspicious logins or actions.
• Set up Xero notifications for important account activities like password changes.
• Reconcile financial data frequently to spot any unauthorized transactions.
• Monitor for unexpected changes to supplier bank details, as this could indicate a business email compromise attack.
• Consider scheduling a security review with OCD Tech to identify potential vulnerabilities in your financial workflows.

Backup and Data Protection

 

Ensuring your financial data remains accessible even in worst-case scenarios:

• Export important financial reports and data regularly as backup copies.
• Store backups securely, ideally encrypted and in multiple locations.
• Understand Xero's data retention policies and how they affect your business compliance requirements.
• Implement a data recovery plan that includes your Xero account information.
• Test your recovery procedures periodically to ensure they work as expected.

App Connections and API Security

 

Third-party integrations can introduce security risks:

• Only connect trusted applications to your Xero account through its official marketplace.
• Regularly review connected apps and remove any that are no longer needed.
• Check the permissions requested by each app before granting access.
• Use Xero's API access management features to control which external services can access your data.
• For custom integrations, work with reputable developers or consult with security professionals at OCD Tech who can ensure secure implementation.

Staff Training and Security Awareness

 

Human factors often present the greatest security risks:

• Provide regular training on security best practices for all staff with Xero access.
• Create a clear security policy that outlines expectations for handling financial data.
• Encourage staff to report potential security incidents immediately.
• Conduct periodic security awareness refreshers to keep best practices top-of-mind.
• Consider simulated phishing tests to assess and improve staff awareness.

By implementing these security measures, you'll significantly reduce the risk of unauthorized access to your Xero account and better protect your sensitive financial data. Remember that security is an ongoing process that requires regular attention and updates as new threats emerge.