Reviewed by Jeff Harms
Director, Advisory Services at OCD tech
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Updated Oct, 3
Discover if Xero meets SOC 1 (SSAE 18) compliance standards for secure financial data management and trust assurance.
Director, Advisory Services at OCD tech
Updated Oct, 3
Guide
Yes, Xero is SOC 1 (SSAE 18) compliant, which means it has met the rigorous standards for internal control relevant to financial reporting through independent audits.
The SOC 1 (SSAE 18) framework is a set of guidelines ensuring that organizations handling financial data have effective controls in place. For a company like Xero, achieving SOC 1 compliance means that independent auditors have thoroughly evaluated and verified its internal controls related to financial reporting. This gives users and their auditors the assurance that the processes behind the service are robust and reliable.
Independent Verification: Xero undergoes regular independent audits following the SSAE 18 standards to check that its internal systems and processes meet strict security and reliability criteria.
Internal Controls: These are the practices and procedures designed to protect financial data, minimize risk, and ensure the integrity of financial reporting.
Assurance for Clients: By being SOC 1 compliant, Xero provides documented assurance to its clients and partners that it maintains effective controls over its financial reporting processes.
Organizations looking to prepare or improve their own compliance posture can get valuable insights from experts. For instance, we at OCD Tech specialize in consulting and readiness assessments, guiding businesses through the intricate requirements of frameworks like SOC 1.
This compliance is particularly important for companies using cloud-based accounting systems like Xero, as it helps maintain trust and confidence that the service will reliably safeguard sensitive financial information. If you have further questions or need guidance on readiness assessments, reaching out to professionals at OCD Tech can be a great next step.
What is...
Explore how Xero’s controls align with SOC 1 (SSAE 18) standards to ensure secure and reliable financial reporting.
Xero is a cloud-based accounting platform widely adopted by small-to-medium businesses, renowned for its robust financial management tools and seamless integration with third-party applications. As a software that processes sensitive financial data, Xero’s commitment to compliance is paramount, particularly when addressing SOC 1 (SSAE 18) requirements. Xero employs stringent cybersecurity measures, risk assessment protocols, and regular audits to ensure that its environment meets the rigorous controls demanded by SOC 1, bolstering user confidence in financial data integrity.
SOC 1 (SSAE 18) is a framework that examines internal controls crucial to financial reporting, ensuring that service providers like Xero implement rigorous processes for data accuracy and security. In this context, SOC 1 compliance means Xero has demonstrated robust risk management and transparent operational practices, vital for maintaining audit integrity.
Key elements include:
This compliance assures clients that Xero meets high standards for safeguarding sensitive financial data.
For a detailed breakdown of the specific security configurations needed for compliance, our article provides a comprehensive walkthrough.
The first thing you should do is turn on multi-factor authentication. Our simple guide shows you how to do it in just a few minutes.
Learn how to enable 2FA/MFA on your Xero account to protect your financial data. Step-by-step guide for secure login using an authenticator app.
Read More
OCD Tech offers a comprehensive suite of cybersecurity and IT assurance services, including SOC 2/3 and SOC for Cybersecurity reporting, IT vulnerability and penetration testing, privileged access management, social engineering assessments, virtual CISO (vCISO) support, IT general controls audits, WISP development, and compliance assistance for frameworks like CMMC, DFARS, and FTC Safeguards.
OCD Tech specializes in serving highly regulated sectors such as financial services, government, higher education, auto dealerships, enterprise organizations, and not-for-profits throughout New England.
Typically, OCD Tech’s on-site work spans 1–2 days, depending on complexity and number of sites, followed by 1–2 weeks of analysis and reporting to deliver clear, actionable recommendations.
SOC 2 reporting demonstrates to clients and prospects that an organization follows best-in-class controls over security, availability, processing integrity, confidentiality, and privacy—boosting trust, meeting RFP/due diligence requirements, and helping secure contracts. OCD Tech helps organizations achieve and maintain this compliance.
Yes—OCD Tech provides guidance for compliance with DFARS (NIST 800‑171), CMMC (Levels 1–3), and FTC Safeguards, ensuring organizations meet specific government or industry-based cybersecurity mandates.
A virtual CISO delivers strategic, executive-level cybersecurity leadership as a service. OCD Tech’s vCISO service is ideal for organizations lacking a full-time CISO and helps build programs, define policy, oversee risk, and guide security maturity.
Absolutely. OCD Tech provides tailored internal IT Audit training and security awareness sessions, plus annual reviews of Written Information Security Programs (WISP), such as Massachusetts 201 CMR 17 and other state or industry-specific controls.
Audit. Security. Assurance.
IT Audit | Cybersecurity | IT Assurance | IT Security Consultants – OCD Tech is a technology consulting firm serving the IT security and consulting needs of businesses in Boston (MA), Braintree (MA) and across New England. We primarily serve Fortune 500 companies including auto dealers, financial institutions, higher education, government contractors, and not-for-profit organizations with SOC 2 reporting, CMMC readiness, IT Security Audits, Penetration Testing and Vulnerability Assessments. We also provide dark web monitoring, DFARS compliance, and IT general controls review.
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