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How to Setup Xero Two-step with Practice Protect

The Australian Tax Office (ATO) is introducing a new operational framework for software developers and for accountants and bookkeepers who use software to interact with the ATO. This new framework requires accountants and bookkeepers to use multifactor authentication when they login. This means any staff member of an Australian practice needs to have 2SA implemented in Xero by 1 March 2018 to comply with the ATO Operational Framework. From March, if you don’t have 2SA, you won’t be able to access Xero Practice Manager, Xero Tax or Xero HQ. Further, to merge the XPM and Xero logins, 2SA is mandatory.

To get your practice ready for this requirement, Xero will have optional 2SA in Xero for accountants and bookkeepers from late January. You can start to get your practice ready for 2SA now by ensuring everyone in your practice is using a unique login and not sharing passwords.

Download an authenticator app on your phone or Windows Desktop

  1. Download and install the relevant authenticator app for your device or PC by following these steps.
  2. If a mobile device, open the App and login with your Practice Protect username and password. You should now see your Apps.

    Set up two-step authentication in Xero

    1. Go to [Your Name], then click Account
    2. Under the Two-step authentication heading, click Setup
    3. Open the Centrify App on your phone and in the top left corner click the 3 lines.
    4. Click on Passcodes.
    5. Click the + button then Scan QR Code option, scan the QR code that now displays in Xero. You can also enter your secret key manually (see step 6) otherwise go to Step 7.
    6. (Manual Optional) Click or enter your key manually.
      Chose Enter Authentication Key on your device. Enter the below:
      Issuer: Xero
      Account Name: Account Name (As Above) 
      Security Key: Key (As Above, Remove Spaces)Click Save
    7. Click Next.
    8. A Xero code will now appear. Enter the authentication code provided by your authenticator app into Xero, then click Next
    9. Select your three security questions and type answers, then click Next.These can be used as a backup if you don’t have your phone or the code is not working. 
    10. Click Next, Done.

    The next time you log in to Xero, you’ll need to enter your authentication code from your devices App in addition to your email address and password.

  3. For Xero’s guide on rolling out 2FA for Xero click here
Updated on January 31, 2018

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