What is SOC 2 and Why Does Every Enterprise Client Ask For It?
SOC 2 is a security certification that proves your startup handles customer data responsibly. Here is everything you need to know without the consultant fees.
The simple version
SOC 2 is a report that proves your company takes security seriously. It was created by the American Institute of CPAs (AICPA) and is now the most common security requirement for B2B software companies selling to enterprise clients in the US.
When a large company considers buying your software, their procurement or security team will ask: "Do you have SOC 2?" If the answer is no, the deal often dies — regardless of how good your product is.
What SOC 2 actually covers
SOC 2 is built around five Trust Service Criteria:
- ✓Security — are your systems protected against unauthorized access?
- ✓Availability — is your service reliably available to customers?
- ✓Processing Integrity — does your system process data correctly and completely?
- ✓Confidentiality — is sensitive data protected appropriately?
- ✓Privacy — do you handle personal information responsibly?
Most startups only need to cover Security and Availability for their first audit. The other criteria are optional unless your customers specifically require them.
Type I vs Type II — what's the difference?
There are two versions of SOC 2:
Type I — A snapshot audit. An auditor reviews your security controls as they exist today and confirms they are designed correctly. Faster and cheaper, but many enterprise procurement teams are starting to reject Type I reports in favor of Type II.
Type II — A period audit. An auditor observes your security controls over a 3-12 month window and confirms they actually worked consistently during that period. This is what most enterprise clients want.
Why does it cost so much?
The total cost of SOC 2 typically breaks down like this:
- →GRC Platform (Vanta, Drata, Sprinto): $7,000–$20,000 per year
- →CPA Auditor firm: $10,000–$20,000
- →Penetration test: $3,500–$7,000
- →Background checks and MDM: $1,000–$3,000
The biggest frustration founders have is that even after paying for a GRC platform like Vanta, a human still has to write all the policies manually. The platform collects evidence — it does not write your Access Control Policy or Incident Response Plan for you.
What are SOC 2 policies?
Policies are written documents that describe how your company handles security. Every SOC 2 audit requires them. Common examples include:
- ✓Access Control Policy — who can access your systems and how
- ✓Incident Response Plan — what you do when something goes wrong
- ✓Risk Assessment Policy — how you identify and manage security risks
- ✓Data Backup Policy — how often you back up data and how you test restores
- ✓Information Security Policy — your overall security commitment
Writing these policies from scratch can take weeks. That is exactly what AuditPass generates for you in 60 seconds.
Frequently asked questions
Do I need SOC 2 if I am a small startup?+
How long does SOC 2 take?+
Can I do SOC 2 without Vanta or Drata?+
What is the difference between SOC 2 and ISO 27001?+
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