SOC 2 is increasingly required by enterprise clients before they’ll sign contracts with SaaS companies, managed service providers, and technology vendors. If you’re losing deals because prospects are asking “do you have a SOC 2 report?” — this guide tells you exactly what’s involved and how to get started.
What SOC 2 Actually Is
SOC 2 is an auditing framework developed by the AICPA for technology companies and service providers. A SOC 2 report is issued by an independent CPA firm after auditing your systems and controls. SOC 2 Type I is a point-in-time assessment — are your controls designed appropriately? SOC 2 Type II is a period-based assessment — did your controls operate effectively over a period of time (typically 6–12 months)? Type II is what enterprise clients want to see.
The Five Trust Service Criteria
Security (required): evaluates logical and physical access controls, system operations, change management, and risk mitigation. Every SOC 2 report must include Security. Availability: your system is available for operation as committed. Processing Integrity: system processing is complete, valid, accurate, and authorized. Confidentiality: information designated as confidential is protected as committed. Privacy: personal information is collected, used, retained, and disclosed in conformity with your privacy commitments. Most companies start with Security only or Security + Availability.
How Long Does SOC 2 Take?
Preparation phase (3–6 months): implement the controls required to meet SOC 2 criteria. Type I assessment (1–2 months after preparation): auditors evaluate your control design. Type II observation period (6–12 months): your controls must operate effectively for the full observation period before the Type II report can be issued. Total timeline for SOC 2 Type II: 9–18 months from starting preparation.
What Controls SOC 2 Requires
The Security criteria requires: access controls (role-based, least privilege, MFA, access reviews), change management (formal processes with testing and approval), risk assessment (regular identification and assessment of risks), incident response (documented and tested plan), vendor management (due diligence and monitoring of third-party vendors), data protection (encryption at rest and in transit, backup and recovery), and monitoring (continuous monitoring of systems for threats).
SOC 2 Cost Estimates
Readiness assessment: $5,000–$15,000 consulting or $10,000–$20,000/year compliance platform (Vanta, Drata). SOC 2 Type I audit: $15,000–$40,000 (CPA firm fees). SOC 2 Type II audit: $30,000–$80,000 (CPA firm fees). Annual maintenance: $20,000–$50,000.
Before spending on a SOC 2 audit, know exactly where your gaps are. A Compliance Gap Analysis covers SOC 2 Trust Criteria readiness and gives you a clear priority action list — delivered in 48 hours for $27.