The Complete Guide to SOC 2 Compliance

Last Updated: February 3, 2026

Table of Contents

• What Is SOC 2?
• What Are the 5 Areas of SOC 2 Compliance?
• What Are the SOC 2 Type 2 Standards?
• What Are the Objectives of SOC 2 Audits?
• Who Needs SOC 2 Type II Certification?
• Who Can Do a SOC 2 Audit?
• How Do You Achieve SOC 2 Compliance?
• How Do You Maintain SOC 2 Compliance?
• Selecting an SOC 2 Auditor
• What Can You Do With Your SOC 2 Report?
• How long does it take to get SOC 2 compliant?
• What Challenges Do SaaS Companies Have During SOC 2 Implementation?
• How Can Organizations Leverage Compliance Automation (GRC) Tools in Their SOC 2 Journey?
• SOC 2 Compliance as a Sales Tool and ROI Differentiator
• Need Help With SOC 2 Compliance? Start With Trava

If you’re part of a SaaS organization, you’re likely familiar with SOC 2 and how important it is for helping smaller tech companies secure deals and build trust with customers. It’s hard to overstate the importance of SOC 2 standards, established by the American Institute of Certified Public Accountants (AICPA), to SaaS providers. It’s the benchmark used to evaluate an organization’s security, availability, processing, integrity, confidentiality, and privacy controls.

What Is SOC 2?

Service Organization Control 2 (SOC 2) is a widely used framework for auditing and attesting to a service organization’s internal controls related to data security and privacy. Think of an SOC 2 report as a security report card for a SaaS or cloud service company. An independent auditor evaluates how well you protect customer information from unauthorized access or misuse. The SOC 2 report covers everything from how you manage system access to the monitoring put in place to track suspicious activity.

The SOC 2 report is one of several issued by the AICPA. It’s important to note that SOC 2 is one of several “SOC” reports. Many people get confused differentiating between SOC 1 versus SOC 2. SOC 1 focuses on financial reporting controls, while SOC 2 looks at broader data security and operational controls. There’s also a third framework, SOC 3. It’s a public, simplified version of a SOC 2 report designed for general audiences. 

SOC 2 focuses on the security and privacy of customer data in your systems and is the most-requested report by SaaS customers. By undergoing a SOC 2 audit and receiving a favorable report, your organization demonstrates a commitment to safeguarding client data and maintaining their trust and confidence.

SOC 2 compliance should remain an ongoing process within organizations. An independent certified public accountant (CPA) firm must perform the audit in accordance with AICPA guidelines.

What Are the 5 Areas of SOC 2 Compliance?

SOC 2 is structured around five Trust Services Criteria, often referred to as the five areas or categories of SOC 2 compliance. These outline the requirements or domains your controls evaluated during an SOC 2 review.

1. Security: How a company sets up protection against unauthorized physical and digital access to systems and data. Every SOC 2 audit includes security by default. Security controls include firewalls, authentication mechanisms, and physical security for data centers.
2. Availability: Focuses on ways organizations ensure systems and services are available and reliable. Auditors assess whether you have measures in place for redundancy, disaster recovery, and uptime monitoring.
3. Processing integrity: Reviews how organizations confirm that system processing is complete, accurate, timely, and authorized. Checks for a SaaS product might include verifying that transactions are processed correctly and that data is not corrupted or lost in transit.
4. Confidentiality: Goes over how businesses protect sensitive information from unauthorized access. This involves controls such as encryption, access permissions, and network security to ensure that confidential data, including business secrets, remains private and inaccessible to those without a business need for it. 
5. Privacy: Looks at the proper collection, use, retention, and disposal of personal information in line with a company’s privacy policies and regulations. That includes reviewing how personal data is handled and whether it complies with applicable laws and regulations. 

The Security category is the only mandatory category in a SOC 2 audit. Other criteria may apply to your organization based on the services provided and customer needs. Many tech companies include Security alongside one or more other relevant capabilities. 

A SaaS company may opt to include Confidentiality, while a company with significant uptime commitments, such as a cloud provider, would include a section on Availability. During the audit scoping, you will decide which of these criteria apply to your system. The goal is to show that your business has adequate controls in place to address each selected area.

What Are the SOC 2 Type 2 Standards?

You may hear the terms Type I and Type II used when discussing SOC 2. These are the reports you can receive, each with a different scope and observation period.

• SOC 2 Type I: This review evaluates the design of your controls at a specific time, akin to a snapshot. The auditor assesses the policies, procedures, and security measures in place to determine whether they meet SOC 2 criteria. A Type I does not verify if those controls are working continuously, only that they exist and are designed correctly. This report is easier to produce, so many companies use a Type I report as an initial milestone or to satisfy an immediate customer request while they work toward a Type II report.
• SOC 2 Type II: This review evaluates the operating effectiveness of your controls over a period of time, usually a six- to 12-month window. The auditor goes deeper by inspecting evidence that you followed those policies and that the controls operated consistently throughout. For example, if your company policy states you will disable or review inactive accounts every 30 days, the auditor will review information from the past few months to confirm this was done. Type II reports are seen as more valuable. However, these reports take longer to obtain than Type I reports. 

SOC 2 Type II reports are considered the gold standard because of the effort they take to achieve. Many organizations require vendors to obtain a Type II report before signing a contract. 

It may make more sense for a company to obtain a Type I audit before pursuing a Type II. If you’re an early-stage startup and haven’t had your controls in place for long, a Type I can be a quick way to demonstrate baseline compliance without having to wait for a Type II. It’s also useful as a readiness checkpoint to identify gaps before starting the long Type II process. 

What Are the Objectives of SOC 2 Audits?

The main reason for performing a SOC 2 audit is to provide independent assurance that your organization’s controls protect customer data according to the trust criteria. The SOC 2 report provides your customers with peace of mind that you’re doing what you say you’re doing regarding security and governance. By achieving SOC 2 compliance, SaaS providers demonstrate their commitment to safeguarding client data and maintaining trust.

The audit process itself provides an opportunity for organizations to strengthen their security practices. The SOC 2 framework encourages companies to formalize policies and continually monitor their controls. The main goal of SOC 2 is to help companies build better security programs.

Who Needs SOC 2 Type II Certification?

Any service organization that handles or processes customer data, especially B2B SaaS companies, should consider SOC 2 compliance. If you store sensitive customer data or operate cloud services on behalf of customers, a SOC 2 Type II report can demonstrate that security is a top priority for your business. 

While SOC 2 originated as a North American standard, it’s increasingly recognized internationally (similar to ISO 27001’s global recognition). SaaS providers, cloud infrastructure platforms, fintech and payment processors, and IT managed service providers are among the organizations that commonly pursue SOC 2. Even if you’re a small team of fewer than 50 people, if you aspire to work with enterprise clients or other security-conscious customers, SOC 2 Type II compliance is likely essential to compete.

If your customers (or their regulators) care about data security, privacy, or availability, then SOC 2 is important. Startups often find that around the time they’re landing larger deals, the question of SOC 2 comes up. Having that report in hand can be a sales enabler (more on that later) and a legal/contractual requirement in some deals.

Who Can Do a SOC 2 Audit?

Only an independent CPA firm or equivalent AICPA-accredited organization can perform a SOC 2 audit and issue the report. The CPA doesn’t necessarily do it alone — they often have staff or partner with security professionals — but a licensed CPA auditor must sign the result. This requirement ensures the audit meets AICPA’s professional standards for fairness and rigor.

Practically, this means you will need to hire a third-party auditor when you’re ready for the SOC 2 examination. Many firms specialize in SOC 2 audits, from big accounting firms to boutique security auditors. When selecting an auditor, you’ll want to find a firm that has experience with companies of your size and industry. A good practice is to speak with a few auditors to understand their process, timeline, and fees. 

If you’re working with a compliance partner or using a compliance automation platform, they can recommend auditors that fit your needs. Ultimately, the auditor you choose should be one you feel comfortable with. They should maintain objectivity, of course, but a collaborative and communicative auditor can make the process far smoother.

How Do You Achieve SOC 2 Compliance?

At this point, you might be wondering how to obtain an SOC 2 report. It’s absolutely achievable for smaller organizations with a clear plan. Think of it as a project with distinct phases, including audit preparation. Here is a SOC 2 requirements checklist of steps to guide you through achieving compliance (and ultimately passing that audit).

1. Understand the Requirements and Scope 

Begin by educating your team on SOC 2 and defining the scope of your audit. Which systems, departments, and locations will be included? Which of the five Trust Services Criteria will you include? For most SaaS startups, “Security” is a given, and you might add Confidentiality or Availability, depending on your customer-facing promises. Clarifying your scope early will focus your efforts. 

2. Perform a Gap Assessment (Readiness Check) 

Next, start evaluating your current readiness to pass an SOC 2 Type II audit. Compare your current practices against the SOC 2 criteria to identify gaps. You can perform this internally using a SOC 2 audit checklist or engage a consultant to conduct a mock audit. The gap assessment will produce a list of tasks, including policies to write, tools to implement, and security measures to tighten.

3. Implement Controls and Policies To Address Gaps

You’ll need to establish controls that may be missing and strengthen those that may be weaker than required. For example, you may need to create documentation for the following:

• Information security policy
• Incident response plan
• Access control policy
• Security tool deployment and configuration

For example, do you have MFA requirements defined, or do you understand which backup solutions are in place in the event of an outage? Other checks to perform include confirming that employees have completed required security training and that you are following vendor risk management strategies. Each task should have an owner, such as the person responsible for configuring logging for security tracking. 

Map your controls to the SOC 2 requirements checklist to ensure you haven’t missed anything. Review online resources, such as GitHub repositories, that outline recommended controls and other requirements for an SOC 2 Type II review. 

4. Operate Controls for the Observation Period 

Next comes the observation period, during which you operate your controls consistently for several months. This period typically lasts six to 12 months. You need to follow all the policies and processes you established, including:

• Log reviews 
• Access reviews 
• Security monitoring 
• Regular data backups

Keep evidence of all these activities. For example, if your policy requires onboarding new employees with security training, keep training records for each new hire. This phase focuses on implementing and documenting the compliance program. It’s wise to conduct periodic check-ins, or even a mini internal audit midway through, to ensure nothing is overlooked. That way, you don’t have surprises pop up after the auditor arrives.

5. Undergo the SOC 2 Type II Audit 

The auditor from the CPA firm will send an advance request for policies, procedures, and evidence samples from the control period. They may also perform interviews or observe processes. For each control in scope, they will test that it is operating effectively. 

For instance, you might have a requirement to patch all vulnerabilities within 30 days. The auditor may review your ticketing system or scanning reports to determine whether any patches took more than 30 days to apply. The audit process for a small company can take a few weeks to a couple of months, depending on your level of preparation and the number of people involved. The better organized your documentation, the smoother this goes. 

6. Receive and Review Your SOC 2 Report 

Once the audit is complete, you’ll receive your SOC 2 attestation report. This document will include the auditor’s opinion, a description of your system and controls, and details of the tests performed. Review it carefully and confirm that it accurately reflects your organization. 

7. Maintain Compliance (Continuous Monitoring) 

Clients will expect annual SOC 2 renewals to confirm that you continue to meet the standards. This means carrying forward the habits established before the review. View compliance as an ongoing process, not a one-and-done effort. If you build a solid foundation, it becomes part of your routine.

How Do You Maintain SOC 2 Compliance?

Below are some ways you can go about keeping yourself in good standing in preparation for an SOC 2 review.

Selecting an SOC 2 Auditor

Your SOC 2 auditor will be the independent party that evaluates your controls and ultimately attests to your compliance. You want someone competent and easy to work with while maintaining objectivity. Below are some tips to help you find an auditor and navigate the costs of SOC 2 compliance. 

1. Go with a licensed CPA firm: Only CPAs can issue an SOC 2 report. Avoid non-CPA firms, as they cannot perform the official audit.
2. Look for experience: You want a firm that has experience dealing with your type of organization. That means looking for an auditor experienced in working with companies of your size and complexity, a critical factor for tech startups and SaaS companies. 
3. Discuss timing and scheduling: It can be hard to book an experienced auditor, especially at year-end when other companies are performing similar reviews. Engage with auditors early to ensure they are available during your preferred period. 
4. Review costs: Get quotes from several firms and ensure you understand what the pricing entails. Some firms charge a flat fee, while others charge individual fees for specific services. Make sure both parties are clear on the terms before signing a contract. 

What Can You Do With Your SOC 2 Report? 

The credibility provided by an SOC 2 report turns the resulting trust into a company asset. Enterprise customers are all about risk reduction. SOC 2 reports address many of the security questions these clients might have. It also helps avoid the need to conduct additional audits or provide redundant explanations of the controls your organization has put in place. Once you achieve SOC 2, consider pursuing additional certifications, such as ISO 27001, if you plan to target international clients. 

Unlock Previously Blocked Deals

Most medium-sized and enterprise organizations require vendors to obtain an SOC 2 report before signing any contracts. It keeps your company from being indefinitely stalled in a review status or overlooked entirely. You open up the playing field when it comes to the kinds of customers you can attract to your business. 

The report also benefits your security and IT teams. That’s fewer meetings they get drawn into, because the SOC 2 report already addresses the security questions most clients might have. Your sales teams also spend less time having to answer compliance questions, while leadership sees fewer assurance requests. This results in hidden ROI savings for your company, allowing client sessions to be more focused and reducing operational drag.

How long does it take to get SOC 2 compliant? 

For a small, motivated team starting from scratch, it usually takes months to complete all required steps. An organization might spend three to six months preparing, followed by another six months in the observation period. The audit itself usually takes a few weeks to complete.

Ready to begin your SOC 2 journey? Make the process easier with our compliance-as-a-service platform!

What Challenges Do SaaS Companies Have During SOC 2 Implementation?

For startups and small businesses, pursuing SOC 2 can present unique challenges. Here are some common hurdles SaaS organizations (especially those with lean teams) encounter during the SOC 2 implementation process.

1. Getting Buy-In From Engineering Team

Fast-moving software teams worry that formal compliance processes will slow them down. It can be challenging to balance  development cycles with the documentation and approvals that controls often require. For instance, developers might need to get sign-off before deploying to production or follow change management procedures. 

The key is to bake these checks into your workflow in a lightweight way (e.g., automated checks in CI/CD or pull request templates) to stay agile. Cultural resistance can occur if team members feel compliance is a bottleneck. Solving this involves training and finding a compromise that meets security requirements without grinding productivity to a halt.

2. Securing a Multi-Tenant Cloud Environment

A strong security setup is critical to SOC 2 compliance. Organizations must demonstrate a strong commitment to preventing client data leaks and protecting the entire system from breaches. Small companies may lack dedicated cloud security engineers, so they often rely on best-practice templates or managed services to ensure proper configuration. Change management and periodic reviews of cloud resources become essential to avoid configuration drift that could introduce vulnerabilities.

3. Continuous Monitoring and Evidence Collection 

For a small team, manually tracking dozens of controls can be tedious and error-prone. For example, if you need to prove that backups ran each day, someone must retain those logs. The challenge is implementing a system or incorporating tools that automate evidence collection and alert you of anything missing. 

Continuous compliance requires discipline. That means performing regular internal audits, monitoring dashboards for key controls, and ensuring that personnel or system changes don’t break any controls. All of this can strain a small operation that doesn’t have a full-time compliance person.

4. Resource Constraints and Expertise Gaps

Smaller organizations often don’t have a dedicated security or compliance department. Those driving SOC 2 compliance may be wearing multiple hats, which limits their time and expertise. Crafting proper policies can be challenging if no one on the team has done it before. Deciding on the right controls or interpreting the SOC 2 criteria in your business context may be confusing at first. 

Engaging a consultant or using compliance software are ways companies overcome this lack of in-house expertise. Additionally, small teams need to foster a culture where everyone takes some ownership of security duties, since there isn’t a separate department to offload it to.

5. Performing Regular Security Testing 

A common question that arises is whether SOC 2 requires penetration testing. Demonstrating that you regularly probe your systems for vulnerabilities strengthens your security posture and is often expected. In fact, auditors usually recommend incorporating penetration testing, or at least annual vulnerability scanning, to satisfy the monitoring of controls criteria in SOC 2. 

From a challenge perspective, arranging and performing penetration testing can be daunting for a small company. It requires planning, skilled testers, and follow-through on remediation. If you skip security testing, customers or a thorough auditor may ask why. The challenge is balancing budget and time constraints in testing to ensure you address all critical issues.

How Can Organizations Leverage Compliance Automation (GRC) Tools in Their SOC 2 Journey?

Compliance automation tools, or governance, risk, and compliance (GRC) platforms, help reduce the pain of achieving SOC 2 compliance. These software solutions streamline the entire process, from preparation to continuous monitoring. These tools also act as “evidence lockers” by replacing the manual collection of evidence. That means saying goodbye to dozens of spreadsheets tracking controls and evidence. 

These tools integrate with existing systems, such as cloud platforms and CI/CD pipelines, and automatically collect evidence and assess compliance with SOC 2 standards. Compliance automation tools typically include pre-mapped SOC 2 checklists and controls out of the box. They continuously monitor your environment and alert you to issues. Tools like these can be a real time-saver for smaller SaaS companies. 

Another benefit is that many automation platforms come with policy libraries and guidance. They might generate template policy documents for you or provide a workflow to manage tasks like onboarding/offboarding checklists. Essentially, they embed many best practices so you don’t have to reinvent the wheel. As a result, even teams without a compliance expert can follow the tool’s roadmap to become compliant.

SOC 2 Compliance as a Sales Tool and ROI Differentiator

For many SaaS companies, a SOC 2 report becomes a powerful sales tool. Here are some ways SOC 2 can directly or indirectly boost your business.

1. Expand Opportunities for Enterprise Deals

Many organizations require that vendors have an SOC 2 Type II report before signing a contract. Not having one can keep you from closing deals. Obtaining an SOC 2 report eliminates this barrier, allowing your sales team to confirm your compliance when completing security questionnaires. 

2. Faster Sales Cycle

SOC 2 compliance can help you quickly address clients’ security concerns. A recent SOC 2 Type II compliance status may help you bypass lengthy questionnaires and avoid back-and-forth from the time you perform a demo to the moment the deal is signed. 

3. Product Differentiator

Your SaaS startup can gain an edge over competitors by demonstrating a current SOC 2 report. It’s also a badge that the marketing team can highlight when promoting your products. Being a trusted brand is critical to establishing and maintaining strong B2B relationships.

Need Help With SOC 2 Compliance? Start With Trava

Navigating SOC 2 compliance can be confusing for many SaaS providers. Trava’s Compliance as a Service solution helps teams get through every step of the SOC 2 journey. Click here to see how Trava has you covered.