SOC 2 for Growing Companies: Complete Guide to Certification
SOC 2 has become table stakes for B2B software companies. Enterprise customers require it before signing. Here's everything you need to know about this key compliance requirement.
What is SOC 2?
SOC 2 (System and Organization Controls 2) is a framework developed by the AICPA for service organizations to demonstrate they have adequate controls over data security, availability, processing integrity, confidentiality, and privacy.
Trust Service Criteria
Security (Required)
Protection against unauthorized access. Includes access controls, firewalls, encryption, and intrusion detection.
Availability (Optional)
System is available for operation as committed. Includes uptime monitoring, disaster recovery, incident response.
Processing Integrity (Optional)
System processing is complete, valid, accurate, timely, and authorized.
Confidentiality (Optional)
Information designated as confidential is protected as committed.
Privacy (Optional)
Personal information is collected, used, retained, and disclosed appropriately.
What to Include
Most companies start with Security only. Add Availability if you have SLAs. Add Privacy if you handle significant personal data. More criteria = more cost.
Type I vs. Type II
| Aspect | Type I | Type II |
|---|---|---|
| What it assesses | Control design at a point in time | Control effectiveness over period |
| Observation period | None (snapshot) | 6-12 months minimum |
| Time to complete | 2-4 months | 9-18 months from start |
| Customer acceptance | Sometimes accepted for new vendors | Standard enterprise requirement |
| Cost | $30K-80K | $50K-150K |
Type I Strategy
Type I can unblock near-term deals while you work toward Type II. Many enterprises will accept Type I from new vendors with a commitment to achieve Type II within a year.
Getting Certified
The Process
1. Readiness Assessment (1-2 months)
- Gap analysis against SOC 2 requirements
- Identify missing policies and controls
- Create remediation plan
2. Remediation (2-4 months)
- Write and implement policies (see compliant finance processes)
- Deploy technical controls
- Train employees
3. Audit (4-8 weeks)
- Select CPA firm (auditor)
- Provide evidence of controls
- Address any findings
Tools and Platforms
Compliance Platforms
Vanta, Drata, Secureframe automate evidence collection and make audits 50%+ faster. $10-30K/year.
DIY Approach
Spreadsheets and manual evidence collection. Cheaper upfront but time-intensive. Works for Type I.
Cost Breakdown
| Component | Cost Range |
|---|---|
| Compliance platform | $10K-30K/year |
| Auditor (Type I) | $20K-50K |
| Auditor (Type II) | $30K-80K |
| Consultant (optional) | $10K-40K |
| Technical remediation | Variable |
| Total Year 1 (Type II) | $50K-150K |
Need Help With SOC 2?
Eagle Rock CFO helps companies prepare for SOC 2 certification efficiently.
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