Summary

Security (the Common Criteria) is mandatory. You choose additional criteria based on your customers’ expectations and your business model.

SOC 2 Compliance for Software Companies: A Complete Step-by-Step Guide

If you’re a software company handling customer data, getting SOC 2 certified isn’t just a nice-to-have — it’s increasingly a requirement to close enterprise deals, pass vendor security reviews, and build lasting customer trust. But the process can feel overwhelming if you’re starting from scratch.

This guide breaks down exactly how to get SOC 2 for your software company, from understanding what it actually means to passing your audit with confidence.

What Is SOC 2 and Why Does Your Software Company Need It?

SOC 2 (System and Organization Controls 2) is an auditing standard developed by the American Institute of Certified Public Accountants (AICPA). It evaluates how a company manages customer data based on five Trust Service Criteria (TSC):

Security (required)
Availability
Processing Integrity
Confidentiality
Privacy

For software companies — especially SaaS providers, cloud platforms, and B2B tools — SOC 2 signals to enterprise customers that you take data security seriously. Many procurement teams won’t even consider a vendor without it.

Beyond sales enablement, SOC 2 helps you build internal security discipline, reduce breach risk, and demonstrate regulatory maturity as you scale.

SOC 2 Type I vs. Type II: Which One Do You Need?

Before starting the process, you need to choose which report type fits your situation.

SOC 2 Type I

A Type I report evaluates whether your security controls are designed appropriately at a single point in time. It’s faster and cheaper to obtain, typically taking 2–3 months.

Best for: Early-stage companies needing to unblock deals quickly or demonstrate initial compliance posture.

SOC 2 Type II

A Type II report evaluates whether your controls are operating effectively over an observation period — typically 6 to 12 months. It carries significantly more weight with enterprise buyers and investors.

Best for: Growth-stage companies with established processes that need to prove sustained security practices.

Most companies start with Type I to establish a baseline, then pursue Type II during the following audit period.

Step-by-Step: How to Get SOC 2 for Your Software Company

Step 1: Define Your Scope

Scope defines what systems, processes, and data flows will be included in your audit. Keeping scope tight reduces cost and complexity without sacrificing credibility.

Ask yourself:

Which products or services handle customer data?
What infrastructure supports those services (AWS, GCP, Azure)?
Which internal teams and processes touch in-scope systems?

Work with your auditor early to align on scope boundaries. Over-scoping is one of the most common and costly mistakes companies make.

Step 2: Select Your Trust Service Criteria

Security (the Common Criteria) is mandatory. You choose additional criteria based on your customers’ expectations and your business model.

SaaS companies with uptime SLAs should consider adding Availability
Companies handling sensitive personal data should consider Privacy
Data processing platforms should consider Processing Integrity

Most software companies start with Security only or Security + Availability.

Step 3: Conduct a Readiness Assessment (Gap Analysis)

A readiness assessment compares your current security posture against SOC 2 requirements. This step is critical — it tells you exactly what controls you need to implement before the audit begins.

Common gaps found in software companies include:

No formal access control or offboarding procedures
Missing vulnerability management program
Lack of documented incident response plan
No vendor risk management process
Insufficient logging and monitoring

You can conduct a readiness assessment internally, hire a consultant, or use compliance automation software to accelerate the process.

Step 4: Implement the Required Controls

Based on your gap analysis, you’ll need to build or formalize security controls. This is the most time-intensive phase.

Key control areas for software companies include:

Access Management

Role-based access control (RBAC)
Multi-factor authentication (MFA) enforcement
Quarterly access reviews
Formal offboarding procedures

Change Management

Code review and approval workflows
Separate development, staging, and production environments
Documented deployment procedures

Risk Management

Annual risk assessment process
Documented risk register
Vendor due diligence program

Monitoring and Logging

Centralized log management
Security alerting and incident escalation procedures
Regular infrastructure vulnerability scans

Policies and Procedures

Information security policy
Acceptable use policy
Business continuity and disaster recovery plan
Data classification and retention policy

This is where having pre-built, auditor-approved policy templates saves enormous time. Writing these documents from scratch is one of the biggest bottlenecks for engineering-focused teams.

Step 5: Collect Evidence

SOC 2 auditors don’t take your word for it — they need evidence that your controls actually exist and function. Start collecting evidence early and maintain it consistently throughout your audit period.

Evidence types include:

Screenshots of system configurations
Access review records and sign-off logs
Security training completion records
Penetration test reports
Vendor contracts and security questionnaires
Incident response logs

Use a shared folder, GRC platform, or compliance automation tool to organize evidence by control.

Step 6: Choose a CPA Auditor

Only licensed CPA firms can issue official SOC 2 reports. Choosing the right auditor matters — you want someone experienced with software companies and SaaS infrastructure.

When evaluating auditors, consider:

Experience with companies at your stage and industry
Familiarity with your tech stack (AWS, Kubernetes, etc.)
Audit timeline and communication style
Pricing structure (flat fee vs. hourly)

Audit costs vary widely. For a Type I report, expect to pay $10,000–$25,000. Type II audits typically run $20,000–$50,000 or more depending on scope and complexity.

Step 7: Complete the Audit

During the audit, your auditor will review your documentation, interview key personnel, and test your controls. For Type II, this happens throughout the observation period.

Tips for a smooth audit:

Assign a dedicated compliance owner internally
Respond to auditor requests promptly
Don’t wait until the last minute to gather evidence
Be transparent about any control gaps — auditors appreciate honesty

Step 8: Receive Your Report and Share It

Once the audit is complete, your auditor issues a formal SOC 2 report. This report is confidential and typically shared under NDA with customers and prospects who request it.

Keep your report current. Most enterprise buyers expect a report dated within the last 12 months.

How Long Does SOC 2 Take?

Report Type	Typical Timeline
Type I	2–4 months
Type II	9–15 months (including observation period)

Timeline depends heavily on how prepared your controls are before the audit begins. Companies that complete a thorough readiness assessment and implement controls before engaging an auditor move significantly faster.

How Much Does SOC 2 Cost?

Total cost includes more than just the audit fee. Budget for:

Readiness assessment: $5,000–$20,000 (or internal time)
Control implementation: Varies based on gaps
Compliance automation tools: $10,000–$30,000/year
Audit fee: $10,000–$50,000+
Ongoing maintenance: Staff time + tooling

You can reduce costs significantly by using pre-built policy templates, standardizing evidence collection early, and keeping scope focused.

Frequently Asked Questions

Do I need SOC 2 to sell to enterprise customers?

Not always required by law, but increasingly expected. Most enterprise security questionnaires ask for a SOC 2 report, and many procurement teams use it as a baseline vendor requirement. If you’re targeting mid-market or enterprise B2B customers, SOC 2 will come up.

Can a small startup get SOC 2?

Absolutely. Many companies pursue SOC 2 with teams of 5–20 people. The key is keeping scope focused and using efficient tools and templates rather than building everything from scratch. Starting early also gives you a competitive advantage as you scale.

What’s the difference between SOC 2 and ISO 27001?

Both are information security frameworks, but SOC 2 is more common in North American markets, while ISO 27001 is more widely recognized globally. SOC 2 is audit-based and produces a report; ISO 27001 is certification-based. Some companies pursue both, but most software companies start with SOC 2.

How do I maintain SOC 2 compliance after the initial audit?

SOC 2 isn’t a one-time project — it’s an ongoing program. You’ll need to conduct annual audits, maintain and update your policies, perform regular access reviews, run vulnerability scans, and keep evidence collection current. Building compliance into your operational rhythm from day one makes this much easier.

What happens if we have a control failure during the audit?

It depends on severity. Minor exceptions are common and don’t necessarily result in a failed audit — auditors note them in the report. Material weaknesses are more serious. The best approach is to identify and remediate gaps during your readiness phase before the formal audit begins.

Start Your SOC 2 Journey Faster With Ready-to-Use Templates

The biggest time sink for most software companies isn’t the audit itself — it’s writing the policies, procedures, and documentation that auditors require. Starting from a blank document is slow, inconsistent, and risky.

Our SOC 2 compliance template library gives you everything you need to get audit-ready faster:

✅ 40+ auditor-approved policy templates
✅ Pre-built security procedures mapped to SOC 2 Trust Service Criteria
✅ Evidence collection checklists and trackers
✅ Risk assessment and vendor management templates
✅ Written in plain language, fully editable for your company

Stop reinventing the wheel. Get your SOC 2 template bundle today and cut weeks off your compliance timeline.

[Browse SOC 2 Templates →]