Summary

Before you do anything else, decide which Trust Services Criteria (TSC) apply to your business. Security (the Common Criteria) is mandatory. The others are optional but may be required by your customers. SOC 2 Type II requires an observation period during which your controls must be consistently operating. The minimum is typically 6 months, though 12 months is more common and more credible with enterprise buyers. Organize this evidence systematically — a shared folder structure or compliance platform makes this much easier. The audit itself typically takes 4 to 8 weeks from evidence submission to final report.

SOC 2 Type II for Software Companies: A Complete How-To Guide

Getting SOC 2 Type II certified is one of the most important milestones a software company can achieve. Enterprise customers expect it, security-conscious buyers demand it, and sales teams love having it. But the process can feel overwhelming if you’ve never done it before.

This guide breaks down exactly how to get SOC 2 Type II certification as a software company — from understanding what it actually means to closing your first enterprise deal with the report in hand.

What Is SOC 2 Type II (and Why Does It Matter)?

SOC 2 is an auditing framework developed by the American Institute of Certified Public Accountants (AICPA). It evaluates how a company manages customer data based on five Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Confidentiality.

SOC 2 Type I evaluates whether your controls are designed properly at a single point in time.
SOC 2 Type II evaluates whether those controls actually worked over an observation period — typically 6 to 12 months.

For software companies, Type II is the gold standard. It tells prospects and customers that your security controls aren’t just on paper — they’re operating consistently over time. Most enterprise buyers and procurement teams won’t accept Type I alone.

Step 1: Understand the Trust Services Criteria

Security — Protection against unauthorized access (always required)
Availability — System uptime and performance commitments
Processing Integrity — Accurate, complete, and timely processing
Confidentiality — Protection of confidential business information
Privacy — Handling of personal information

Most SaaS companies start with Security only, then add Availability. If you handle sensitive personal data, adding Privacy may give you a competitive edge.

Step 2: Conduct a Readiness Assessment

A readiness assessment is your gap analysis — it tells you where you stand today versus where you need to be. This is where most software companies underestimate the work involved.

What to Evaluate During Readiness

Access controls — Who has access to what systems? Are privileges reviewed regularly?
Encryption — Is data encrypted in transit and at rest?
Incident response — Do you have a documented and tested incident response plan?
Vendor management — Are your third-party vendors assessed for security risk?
Change management — Are code deployments and infrastructure changes controlled and documented?
Logging and monitoring — Are system events logged, retained, and reviewed?

You can conduct this assessment internally or hire a compliance consultant. Either way, document every gap you find — these become your remediation roadmap.

Step 3: Build and Implement Your Security Controls

This is the most time-intensive phase. Based on your readiness assessment, you’ll need to implement controls across multiple domains. Here’s what most software companies need to address:

Policies and Procedures

Write formal policies covering:

Information security policy
Acceptable use policy
Access control and user provisioning
Password and MFA requirements
Data classification and handling
Business continuity and disaster recovery
Vendor risk management

These policies must be approved by leadership, communicated to employees, and reviewed at least annually.

Technical Controls

Enable multi-factor authentication (MFA) across all critical systems
Implement role-based access control (RBAC)
Configure centralized logging (e.g., AWS CloudTrail, Datadog, Splunk)
Set up vulnerability scanning and patch management
Use endpoint detection and response (EDR) tools
Encrypt databases and backups

Operational Controls

Conduct background checks for new hires
Deliver security awareness training (and document completion)
Perform regular access reviews (quarterly is common)
Run tabletop exercises for incident response
Maintain a risk register and review it periodically

Step 4: Choose Your Audit Period

SOC 2 Type II requires an observation period during which your controls must be consistently operating. The minimum is typically 6 months, though 12 months is more common and more credible with enterprise buyers.

Your audit period officially starts once your controls are fully implemented. This means the clock doesn’t start on day one of your compliance project — it starts when you’re actually ready.

Pro tip: Many companies pursue SOC 2 Type I first to validate control design, then roll directly into the Type II observation period. This can accelerate your timeline to a credible Type II report.

Step 5: Select a CPA Auditor

Only a licensed CPA firm can issue a SOC 2 report. This is not something you can self-certify. When selecting an auditor, consider:

Experience with SaaS companies — Ask for references from similar-sized software businesses
Pricing transparency — Audit costs typically range from $15,000 to $50,000+ depending on scope and firm size
Timeline and communication style — A responsive auditor saves you significant time
Complementary tooling — Some auditors partner with compliance automation platforms

Popular audit firms for software companies include Johanson Group, Schellman, A-LIGN, and many regional CPA firms that specialize in technology companies.

Step 6: Use Compliance Automation Tools (Optional but Recommended)

Compliance automation platforms can dramatically reduce the time and cost of getting SOC 2 Type II. Tools like Vanta, Drata, Secureframe, and Tugboat Logic continuously monitor your technical controls, collect evidence automatically, and integrate with your existing tech stack.

These platforms are particularly valuable during the observation period — they ensure you’re not scrambling to gather evidence right before the audit.

Step 7: Prepare for and Complete the Audit

Once your observation period ends, your auditor will request evidence across all control areas. Expect to provide:

Policy documents with version history and approval dates
Access review logs
Training completion records
Vulnerability scan reports
Change management tickets
Incident logs
Vendor assessments
System configuration screenshots

Organize this evidence systematically — a shared folder structure or compliance platform makes this much easier. The audit itself typically takes 4 to 8 weeks from evidence submission to final report.

How Long Does SOC 2 Type II Take?

Here’s a realistic timeline for a software company starting from scratch:

Phase	Estimated Duration
Readiness assessment	2–4 weeks
Control implementation	2–4 months
Observation period	6–12 months
Audit fieldwork and report	6–10 weeks
Total (minimum)	~9–12 months

Companies that use automation tools and start with well-documented policies can compress some phases, but the observation period has a hard floor.

How Much Does SOC 2 Type II Cost?

Budget across three categories:

Auditor fees: $15,000–$50,000
Compliance automation tooling: $10,000–$30,000/year
Internal staff time: Often the largest hidden cost — plan for 200–500 hours of engineering, operations, and leadership time

Total first-year investment typically ranges from $30,000 to $100,000+ depending on your company size and existing security maturity.

Frequently Asked Questions

Do I need SOC 2 Type I before Type II?

No, it’s not required. However, many companies find Type I valuable because it validates control design before the observation period begins. If your timeline is flexible, doing Type I first is a smart risk-reduction strategy.

Can a startup get SOC 2 Type II?

Absolutely. In fact, early-stage SaaS companies increasingly pursue SOC 2 Type II to unlock enterprise sales channels. The key is building security controls into your infrastructure from the start rather than retrofitting them later.

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

SOC 2 is a US-centric attestation report primarily recognized in North America. ISO 27001 is an internationally recognized certification. Many global software companies pursue both. If your primary market is the US, start with SOC 2.

How long is a SOC 2 Type II report valid?

SOC 2 reports cover a specific observation period and don’t technically “expire,” but most enterprise buyers expect a report dated within the last 12 months. Most software companies conduct annual audits to maintain a current report.

What happens if auditors find exceptions?

Exceptions (control failures) don’t necessarily mean you fail the audit. Auditors document them, you explain compensating controls or remediation steps, and the report reflects the exception with context. Fewer exceptions obviously make for a stronger report.

Start Your SOC 2 Journey with Ready-to-Use Templates

The most time-consuming part of SOC 2 Type II isn’t the audit itself — it’s creating all the policies, procedures, and documentation your auditors expect to see. Writing these from scratch can take weeks and still miss critical requirements.

Our professionally developed SOC 2 compliance template library gives you everything you need:

✅ Information security policy templates pre-mapped to SOC 2 Trust Services Criteria
✅ Incident response plan, risk register, vendor assessment forms, and more
✅ Access review templates and change management documentation
✅ Employee security awareness training acknowledgment forms
✅ Audit-ready formatting that auditors recognize and trust

Skip months of guesswork and start your observation period faster. Download our complete SOC 2 Type II template bundle today and walk into your audit prepared, organized, and confident.