What is SOC 2 and Why Should You Care?
If your company works with customer data—whether it’s through a software platform, a cloud service, or some kind of backend support—you’ve probably been told at some point that you “need SOC 2 certification.” But what exactly does that mean?
Let’s make it simple.
SOC 2 certification is a widely accepted framework that evaluates how securely your company manages and protects data. It’s not a law, and it’s not mandatory—but more and more companies are demanding it, especially if you work in tech, SaaS, finance, or health. The standard was developed by the American Institute of Certified Public Accountants (AICPA) and focuses on internal controls related to data security.
But here’s the catch: SOC 2 isn’t just about IT tools or encryption. It’s really about how your business operates behind the scenes—how you train your team, write your policies, control access to systems, and prepare for risks.
SOC 2 Isn’t Just for Big Corporations Anymore
A decade ago, only major enterprises went through SOC 2 audits. Today? Even small startups are expected to be compliant. It’s now a trust signal—one that tells your customers: “Yes, we’re taking your data seriously.”
Why SOC 2 Exists
SOC 2 was built to answer a growing question in the digital age: “How can I trust you with my data?” With breaches and hacks making headlines regularly, businesses want to know their vendors aren’t a weak link. That’s where SOC 2 certification comes in—developed by the American Institute of Certified Public Accountants (AICPA), it’s an independent audit of how you run your systems and how well you follow your own policies.
When companies talk about SOC type 1 and type 2, they’re referring to two different stages of compliance. Both serve unique purposes in proving your security posture to customers and auditors.
So now you understand what SOC 2 is. But what about SOC type 1 and type 2? Are they levels? Versions? Is one better than the other?
Let’s break this down
Think of SOC 2 Type I like checking your reflection in a mirror—it shows how your security controls appear right now, but not how they hold up under real-world pressure. Did you design things the right way? Check. But just like a single photo won’t tell you if your posture is strong over time, Type I doesn’t test whether your defenses hold up day after day.
The auditor checks whether you’ve put the right policies and SOC 2 controls in place, and whether they match what SOC 2 expects. But remember—it’s a one-day review. It doesn’t evaluate how well your team follows those processes over time, just that they exist and are ready to go. They’ll check things like:
- Do you have access controls in place?
- Are your employees trained on security policies?
- Do you have a documented incident response plan?
If all that’s solid and ready, great—you’ll pass Type I. But here’s the key: Type I is a point-in-time report. It just says your systems look good today.
SOC 2 Type II goes much deeper. Instead of taking a snapshot, it’s more like reviewing your security habits over a season—a full timeline.
This type of SOC 2 audit usually spans 3 to 12 months. The auditor doesn’t just check your documentation. They’ll also look for evidence that your team consistently follows your controls over that period.
In other words:
- Did you keep logs of user access every month?
- Did you conduct regular risk assessments?
- Did your team actually complete the training they were supposed to?
SOC 2 Type II answers the question: “Are you not only set up properly, but are you living these practices day in and day out?”
So, Which One Should You Start With?
If you’re just beginning your SOC 2 certification journey, Type I is usually the smarter move. It’s faster, cheaper, and helps show clients that you’re working toward full compliance.
Then, after a few months of following your internal processes, you can go for Type II. By that point, you’ll have real data and audit trails to prove your team is walking the talk.
Think of It Like This:
- Type I = The Blueprint – You’ve got everything laid out, ready to build.
- Type II = The Building – You actually built it, and it’s holding up over time.
Both are valuable. But if you want to win over bigger clients or deal with highly regulated industries, SOC 2 Type II is what really moves the needle.
Ideally, your long-term compliance roadmap should cover both SOC type 1 and type 2 so you’re ready for any client request or enterprise-level deal.
Whether you start with Type I or go straight to Type II, understanding the difference between SOC type 1 and type 2 is crucial for choosing the right compliance path for your business.
The SOC 2 Compliance Checklist – What You Actually Need to Prepare
So you’re ready to take SOC 2 seriously. That’s awesome. But before you bring in an auditor or start shopping for compliance platforms, you need to get your house in order.
That’s where a SOC 2 compliance checklist comes in handy. Think of this as your prep list—the things you need to have in place before anyone comes knocking.
Here’s what you’ll want to focus on:
✅ 1. Write and Organize Your Security Policies
- Acceptable use of company systems
- Password management
- Remote work security
- Vendor and third-party risk
- Change management
✅ 2. Onboard and Offboard Employees Securely
- How do you provision and deprovision access?
- Are you using role-based access control?
- Is access regularly reviewed and updated?
✅ 3. Use Multi-Factor Authentication (MFA)
- Email and collaboration tools
- Cloud storage
- Admin dashboards
- DevOps platforms
✅ 4. Run Regular Security Training
- Training at least once a year
- Records of completions
- Phishing, password safety, reporting suspicious activity
✅ 5. Encrypt Data – At Rest and In Transit
- Encryption in storage (e.g., AWS S3)
- Encryption during transfer (HTTPS, SSL)
- Proper key management
✅ 6. Have an Incident Response Plan
- Detection methods
- Roles and responsibilities
- Notification steps
- Lessons learned tracking
✅ 7. Monitor and Log Activity
- Login attempts
- Configuration changes
- System outages
- Failed access attempts
✅ 8. Backups and Disaster Recovery
- Backup regularity
- Recovery documentation
- Testing your recovery plan
This checklist might look long, but many of these items are already happening behind the scenes—you just need to document them and make sure the processes are repeatable.
SOC 2 Certification Cost – What You’re Really Paying For
If you’ve been Googling “SOC 2 certification cost”, you’re not alone—it’s one of the first questions companies ask when starting their compliance journey.
The truth is, there’s no fixed SOC 2 certification cost, because every organization starts from a different place with different needs.
Alright—let’s talk about the part no one really likes to bring up until they have to: the price tag.
SOC 2 certification isn’t free, and yeah, it’s not exactly cheap either. But the real answer to “how much will this cost?” is a bit like asking how much it costs to remodel a kitchen. It depends. A lot.
Let’s Look at Where the Costs Come From
There’s no single invoice with “SOC 2” at the top and a neat total at the bottom. It’s a mix of stuff. Here’s how it usually shakes out:
- Internal controls and policy setup
- SOC 2 audit from a certified firm
- Fixing security gaps or documentation issues
- Ongoing compliance and monitoring tools
So… Is It Worth It?
That’s the real question. And honestly? For most companies, it absolutely is.
If you sell to businesses—especially ones that are security-conscious—being SOC 2 certified can:
- Speed up deals
- Build trust with clients
- Impress investors
Yeah, there’s a cost. But in many cases, it’s the price of earning trust at scale.
Ready to get certified but not sure where to start? Our next post breaks it down step-by-step.
“If you’re looking for a step-by-step approach, don’t miss our SOC 2 certification guide.”.
FAQs
❓What is included in a SOC 2 compliance checklist?
Answer:
A solid SOC 2 compliance checklist covers everything from access controls and employee onboarding to data encryption and incident response planning. It ensures your policies align with the Trust Services Criteria and are both documented and enforced.
❓ How much does SOC 2 certification cost?
Answer:
The SOC 2 certification cost depends on your company’s size, systems, and audit readiness. Costs typically include readiness assessment, remediation efforts, auditor fees, and ongoing monitoring tools. It can range from a few thousand to tens of thousands of dollars depending on complexity.
❓ What is a SOC 2 audit?
Answer:
A SOC 2 audit is a formal assessment performed by a certified CPA firm to evaluate how well your company adheres to security, availability, processing integrity, confidentiality, and privacy principles. The audit results in a report that proves your commitment to data protection.
❓ What does a SOC 2 report include?
Answer:
A SOC 2 report includes a detailed summary of your control environment, the auditor’s findings, test results, and any exceptions or gaps. It’s often shared with clients as proof that your organization takes data security seriously.
