SOC 2 for SaaS Companies: A Complete Walkthrough

Imagine you’re about to close a deal with an enterprise customer. They find your product a solid fit. The pilot seems to have gone well. And then, they turn towards the procurement checklist—a full security review, a questionnaire with nearly 70 questions, and one particular requirement that brings you to a screeching halt. “Do you have a SOC 2 report?”

That moment shows up earlier than most SaaS teams expect and holds particularly true when selling to finance, legal tech, or healthcare. In this article, you’ll learn what SOC 2 involves, how the audit process works, and how to make it easier to manage with automation.

What is SOC 2?

SOC 2 is a security framework used to assess how cloud-based companies design their operational controls and manage customer data. The framework was introduced by the American Institute of Certified Public Accountants (AICPA) and is now widely used across B2B SaaS and tech industries. It focuses on five Trust Services Criteria, TSCs for short, namely Security, Availability, Processing integrity, Confidentiality, and Privacy.
After a company has designed and implemented its internal controls and processes, an external auditor evaluates them. If the controls meet the expected standards laid out by the SOC 2 framework, the company receives a formal SOC 2 report.

Why SOC 2 matters for SaaS companies

SOC 2 strengthens the security posture for SaaS companies and gives buyers clear, independent assurance that data is being handled the right way.

In regulated industries, security reviews can drag out. Legal teams ask for proof of internal controls. Security wants visibility into access, monitoring, and incident response. Without SOC 2, teams often end up fielding ad-hoc questionnaires and one-off requests.

A SOC 2 report speeds that process up. It removes the need for a full security assessment and helps deals move forward with less friction.

Is SOC 2 mandatory for SaaS?

No. There’s no legal requirement. But if your product handles customer data, and you’re selling into finance, healthcare, legal tech, or any regulated sector—expect to be asked for it.

Buyers won’t always say, “Send us your SOC 2 report.” The request usually turns up in other ways: due diligence checklists, security questionnaires, and procurement hurdles. They’ll want proof that you manage access, monitor systems, and handle incidents the right way. SOC 2 lets you answer all of that in one shot.

SOC 2 vs. ISO 27001 vs. other frameworks

Security frameworks aren’t one-size-fits-all. Choosing between SOC 2 &, ISO 27001, or other frameworks depends on who you’re selling to, where your users are based, and the type of data you manage. 

Here’s a quick comparison of the most relevant frameworks SaaS companies typically consider.

	SOC 2	ISO 27001	HIPAA	GDPR	PCI DSS	FedRAMP
Primary Focus	Operational security controls	Information security management system (ISMS)	Safeguards for healthcare data (ePHI)	Data privacy, consent, and user rights	Protection of cardholder data	Cloud security requirements for US federal use
Who It Applies To	SaaS and cloud providers	Companies with global or enterprise customers	Platforms handling patient or medical data	Platforms collecting personal data from EU users	Products that process, transmit, or store credit card data	Vendors selling to the US government agencies
Region/Context	Common in the US	Widely used across Europe and APAC	Mandatory in US healthcare	Applies across the EU and to any company with EU users	Required globally for payment-related platforms	Mandatory for public-sector contracts in the US

SOC 2 Type I vs Type II

The difference between SOC 2 Type I vs Type II is in what the auditor looks for, when the test happens, and how deep it goes.

With a Type I, the auditor looks at whether your controls are in place. That’s it. One point in time. It’s useful when you’re setting up your program and need something to give your customers during early security reviews.

A SOC 2 Type II report doesn’t stop at design. It checks if the controls are designed, implemented, and function over time. The observation period that an auditor uses to assess controls typically ranges between 3 and 12 months. That includes verifying if logs exist, access reviews happen on schedule, and alerts are resolved on time and not just written into policy.

Most teams start with Type I to clear early-stage due diligence. As sales cycles stretch out or buyers ask for proof of consistency, A Type II becomes the next step in the compliance roadmap and conveys a long-term commitment to data security.

Watch this video to learn more:

SOC 2 compliance requirements for SaaS

At the core of SOC 2 are five trust principles (formally known as the Trust Services Criteria). Each maps to a category of controls that SaaS companies are expected to design and implement.

• Security is a mandatory criteria. It speaks to how well systems are protected from unauthorized access. Think firewalls, MFA, endpoint protection, and regular audits.
• Availability covers how systems perform under stress. Controls here focus on backup strategies, failover plans, and infrastructure health checks that minimize downtime.
• Processing Integrity asks a different question: Are systems performing as intended? This includes version control, change tracking, and automated validation checks.
• Confidentiality focuses on how restricted information is handled. That means role-based access, encryption standards, and safe disposal of sensitive data.
• Privacy is more specific. It applies when personal data is collected or processed. Controls must reflect what’s promised in privacy policies, from collection to deletion.

Security applies to every SOC 2 report. The others depend on what kind of data you manage and what your customers expect. Most SaaS teams start with Security and expand from there as contracts, audits, or industries demand it.

SOC 2 audit process for SaaS: Step-by-step

Here’s what SaaS audit readiness for SOC 2 compliance actually looks like:

1. Define what’s in scope

Start with the systems that touch customer data. That includes cloud infra, CI/CD tools (like GitHub Actions or Jenkins), code repositories, HR systems, identity providers, and sometimes even support platforms. If data flows through it, it’s within scope. 

Choose your audit type early. Type I checks design. Type II checks durability. That choice affects how long prep takes and what kind of evidence you’ll need to provide.

2. Spot the gaps

Some controls won’t exist. Some will, but won’t be enforced. Others will live in a document that no one’s looked at. Identify these gaps. Connect practice to policy. Assign ownership where there isn’t any. Auditors check whether each control aligns with the Trust Services Criteria. You need to make sure every control can be traced.

3. List the controls already in use

Many teams already follow security practices that qualify as controls. They just haven’t documented them formally. These might include MFA, access logs, role-based permissions, and system monitoring. Each of these qualifies as a valid control under SOC 2.

Map every control to the trust principles you plan to include in your audit. Assign responsibility to someone with operational insight into the control. They should understand how it works and be able to provide evidence when asked.

4. Collect proof (and expect friction)

Evidence collection is where the difficulty starts. Not because it’s hard. Because no one tracks everything in one place. Logs, approvals, screenshots, and exports are all expected to be presented in a digestible format. 

A Type I audit requires a snapshot of controls. A Type II audit mandates a trail of evidence that proves that controls function consistently over the observation period. Evidence for some controls will be easy to grab. Others might live across three tools and two teams. Plan for that early. It saves you time later.

5. Pick an auditor who fits your setup

Choose a firm accredited to issue SOC 2 reports. They should meet AICPA standards and have experience auditing SaaS companies. Ask about past clients. Ask how they interpret the Trust Services Criteria in cloud-native environments.

Some firms bring deep experience but take a rigid approach. Others know how to balance precision with how SaaS teams actually work. That difference shows up in how fast the audit moves and how much back-and-forth it takes to get through it.

6. Run a readiness assessment

A readiness assessment is an internal audit done before the formal SOC 2 review. It helps confirm whether your controls are properly documented, consistently followed, and aligned with the trust principles you plan to include.

Some issues won’t be obvious from checklists or planning docs. Logs may be incomplete. Some controls might not have a clear owner. A policy could say one thing while the actual process does something else. A readiness assessment helps you find those gaps before they’re flagged during the audit.

7. The external audit

The audit begins when the auditor sends the first request for access or evidence. From there, they walk through your systems, review controls, and ask for clarification where needed.

Type I audits evaluate whether controls are designed appropriately. Type II audits test whether those controls operated effectively over a defined review period.

The auditor compiles findings into a draft report. You’ll have an opportunity to review it and address any factual inaccuracies. Once finalized, the report becomes your formal attestation. Most are valid for twelve months and may include exceptions based on what the auditor observed.

How much does a SOC 2 audit cost for SaaS?

There’s no single number for SOC 2 compliance cost. It depends on your audit type, the audit firm you work with, and the maturity of your control environment.

Type I audits tend to fall between $10,000 and $25,000. Type II audits usually land higher—$25,000 to $50,000 is a common range. That’s just for the auditor. It doesn’t include the internal time you’ll spend preparing evidence, fixing gaps, or running a readiness check.

Teams handle prep differently. Some bring in consultants to fill skill gaps. Others manage everything in-house or lean on automation to reduce manual effort and keep costs predictable.

If you’re building from scratch, expect to invest more time, people, and budget. But if most controls already exist and you’ve got someone managing the process, the audit becomes far less expensive than the numbers above suggest.

Why first-time SaaS teams use Sprinto for SOC 2

The hardest part of a first SOC 2 audit is not the audit itself. It is owning the moving parts before the audit starts.

Controls live on one platform. Evidence lives in another. One person is chasing screenshots. Another is checking access reviews. Nobody wants to own the whole thing full-time.

Sprinto is built for that stage. The platform’s autonomous compliance workflows serve as a first compliance operator for SaaS teams: it scopes the program around your stack, automatically maps controls, captures audit-grade evidence in the background, and keeps the next action visible. You still make the decisions. Sprinto handles the repetitive coordination.

Here’s what that looks like in practice:

• Connects to your cloud, IAM, version control, ticketing, and HR systems and maps relevant controls automatically
• Tracks control health continuously, so gaps show up before the audit window
• Logs evidence as work happens, instead of making teams rebuild it later
• Flags missing approvals, stale policies, and overdue reviews early
• Gives auditors a live workspace, which cuts down repeated requests and clarification loops

That is where Sprinto’s audit-readiness layer becomes useful: by the time the auditor comes in, the story is already organized.

FAQs

Is SOC 2 certification mandatory for SaaS companies?

No. There’s no legal requirement. But customers (especially enterprise buyers) routinely ask for it. In most cases, SOC 2 for SaaS companies becomes mandatory the moment a deal is finalized.

What are the key SOC 2 controls for SaaS?

It depends on which trust principles you include. But across SaaS companies, the most critical controls typically cover:

• Logical access (who can access what)
• Onboarding and offboarding
• Change management
• Incident response
• Vendor risk reviews
• Data backups and recovery

These map back to security, availability, and confidentiality—the most common principles for SaaS teams.

Can early-stage startups get SOC 2 certified?

Yes. SOC 2 for startups is common if you’re selling into mid-market or enterprise. Most early-stage companies don’t have formal controls at first, but with automation, it’s possible to set up, monitor, and prove them without building a GRC team from scratch.

What’s the difference between SOC 1 and SOC 2?

SOC 1 focuses on financial reporting systems. It’s typically requested by customers who rely on your platform for their financial controls. SOC 2 covers security and operational controls. That includes how you manage data, systems, access, and vendors. If you’re a SaaS company handling customer data, SOC 2 is the one you’ll need.

How long is SOC 2 valid?

One year. After that, you need to go through another audit to stay current. Most companies schedule their next review close to the expiration date to avoid gaps in coverage.