Xero's servers are located in enterprise-grade hosting facilities that have strong physical security to prevent people accessing the servers. When you access Xero you have multiple levels of security to protect your account. Connections to Xero are encrypted with the same protection your internet banking uses. Xero also uses MultiFactor Authentication (MFA) to ensure that only you can access your Xero account. Lastly, Xero do regular data security audits and monitor security systems to identify and manage threats. Using Xero is far more secure than having accounting software on your server or desktop