Let me guess. A customer just asked for your SOC 2 report.
You panicked. You Googled. Now you’re drowning in vendor pitches promising to “streamline your compliance journey” for only $50K.
Breathe. Here’s how to get SOC 2 certified without destroying your budget or sanity.
How Much Does SOC 2 Cost?
Budget for:
- Audit fees: $15K-50K+ (depends on company size and complexity)
- Security tools: $5K-30K per year (MFA, monitoring, endpoint protection, backups)
- Consultant help (optional): $10K-50K if you need guidance the first time
Total first year: $30K-130K depending on your starting point and company size.
You can go cheaper if you DIY most of it. Most startups get help the first time, then manage renewals internally.
How Long Does SOC 2 Take?
If you already have decent security:
- 3-6 months to get audit-ready
- 4-8 weeks for Type I audit
- 6-12 months for Type II audit (you need to prove controls work over time)
Starting from scratch?
- 6-12 months total
Don’t try to rush it. Auditors can tell when you’re faking documentation.
What Is SOC 2? (Simple Explanation)
SOC 2 is an audit that proves you’re not reckless with customer data.
An auditor reviews your security practices. If they pass, you get a report. You give that report to customers who want proof you won’t leak their data all over the internet.
There are two types:
- SOC 2 Type I: Snapshot audit at a point in time (faster, cheaper, less impressive)
- SOC 2 Type II: Audit over 6-12 months (more credible, what enterprise buyers actually want)
SOC 2 isn’t hard because the controls are complicated. It’s hard because everyone treats it like a mystery you need consultants to decode.
It’s not. Here’s what actually matters.
Do You Need SOC 2? (Checklist)
Get SOC 2 when:
- ✅ You’re losing enterprise deals without it
- ✅ Customer contracts require it
- ✅ You handle sensitive data (PII, health info, financial data)
- ✅ Your competitors have it and you don’t
Skip it when:
- ❌ You’re pre-revenue or early stage
- ❌ Your customers aren’t asking for it
- ❌ You sell to SMBs who don’t care (yet)
Don’t get SOC 2 because some LinkedIn thought leader said you “should.” Get it when you’re losing money without it.
What Everyone Gets Wrong
Wrong: “We need perfect security before we can audit.”
Right: You need documented, consistent security practices. Perfect doesn’t exist.
The audit isn’t pass/fail. It’s “do you do what you say you do?” If you say you require MFA and actually enforce it, you pass. If you say you require MFA but half your team doesn’t use it, you fail.
The gap isn’t in your tools. It’s in the disconnect between your policies and reality.
SOC 2 Trust Service Criteria: Which Ones to Choose
SOC 2 measures five things (called “Trust Service Criteria”):
- Security (mandatory - everyone needs this)
- Availability (is your service up when it should be?)
- Processing Integrity (does it work correctly?)
- Confidentiality (do you protect sensitive data?)
- Privacy (do you handle personal info properly?)
Start with Security only. Don’t add the others unless:
- A customer specifically asks for them
- Your product promises something those criteria cover (like “99.9% uptime” = Availability)
Most startups overcomplicate this. Stick with Security for your first audit. You can add more later.
SOC 2 Requirements Checklist
I’ve watched companies spend $100K getting ready for SOC 2 when they could’ve done it for $20K. Here’s what actually matters:
1. Write Down What You Do
Document your security policies. Not what you wish you did. What you actually do.
- Who can access what
- How you encrypt data
- What happens when someone gets fired
- How you vet vendors
- What you do when something breaks
Keep it short. Three pages that match reality beats 100 pages of copy-pasted nonsense nobody reads.
2. Do What You Wrote Down
This is where companies fail. They write beautiful policies, then ignore them.
SOC 2 audit requirements (the actual checklist):
- ✅ MFA everywhere (Okta, Google Workspace, whatever)
- ✅ Encrypted data (at rest and in transit)
- ✅ Background checks for people with data access
- ✅ Vendor security reviews (get their SOC 2 reports)
- ✅ Log monitoring (know when weird stuff happens)
- ✅ Backups (and actually test them)
- ✅ Security training for all employees
- ✅ Incident response plan (written and tested)
- ✅ Access reviews (quarterly checks on who can access what)
None of this is exotic. It’s basic hygiene.
3. Save Proof
Auditors want evidence. Save it as you go:
- Screenshots of security settings
- Training completion records
- Vendor contracts with security terms
- Access logs showing who did what
- Incident documentation
Do this monthly. Don’t scramble at audit time trying to reconstruct six months of work.
4. Fix What’s Broken
The auditor will find gaps. Everyone gets “exceptions” on their first audit.
Common ones:
- Not all employees completed security training
- Vendor reviews are inconsistent
- Access logs aren’t being reviewed
- Password policy isn’t enforced everywhere
You get 30-60 days to fix them. Then you pass.
Don’t freak out. This is normal.
5. Pick an Auditor
Find a firm that’s done this before. Ask:
- Have you audited companies our size in our industry?
- What’s the timeline?
- What’s the cost?
Expect $15K-50K depending on your size and complexity.
What Actually Breaks During Audits
After helping companies through this, here’s what trips people up:
The vendor risk gap. You’re using 47 SaaS tools. The auditor asks for security reviews on all of them. You don’t have them. Now you’re scrambling to get SOC 2 reports from every vendor while your audit is on hold.
Fix Do this quarterly, not during the audit. For tools with customer data access, get their SOC 2 report and file it. For everything else, document why you don’t need a full review (read-only access, no sensitive data, etc).
The “we thought we were doing that” problem. Your policy says you review access quarterly. You’re actually doing it… never. Or maybe twice last year. The auditor notices.
Fix: If you say you’ll do something, do it. Or change your policy to match reality. Don’t lie.
The documentation black hole. You’re doing all the right things, but you’re not writing it down. The auditor can’t give you credit for security practices they can’t verify.
Fix: Create a simple tracker. Log your security activities as you do them. Screenshots, meeting notes, whatever. Make evidence collection a habit, not a last-minute panic.
The “what do you mean we need an incident response plan” moment. Every audit asks for it. Most startups don’t have one. Or they have a 50-page template they’ve never tested.
Fix: Write a three-page document that says who to call, what to do first, and how to communicate. Test it with a tabletop exercise. That’s enough.
What You Don’t Need
You don’t need 47 security tools. Start with:
- Identity/access management (Okta, Google Workspace)
- Endpoint protection (antivirus, MDM)
- Log monitoring (basic SIEM)
- Backup solution
Add complexity when you have revenue, not because a vendor scared you.
You don’t need a 100-page policy manual. Write what you actually do in plain English. The auditor cares if you follow it, not if it sounds impressive.
You don’t need perfect. You need consistent and documented. Ship the basics, then improve.
The Bottom Line
SOC 2 is not optional if you want enterprise customers. But it’s also not magic.
You need to show you’re thoughtful about security and you actually follow through. That’s it.
Start building your program now. Document as you go. Get help when you’re stuck.
And whatever you do, don’t let fear-mongering vendors convince you SOC 2 requires six months and $100K in tools.
It requires honest documentation and consistent execution. Everything else is negotiable.
SOC 2 FAQ: Common Questions
Can you fail a SOC 2 audit?
Sort of. SOC 2 isn’t strictly pass/fail. The auditor issues a report that includes:
- Your controls (what you say you do)
- Test results (whether you actually do it)
- Exceptions (gaps where you didn’t meet your own policies)
You can get a clean report (no exceptions) or a report with exceptions. Most companies get exceptions on their first audit. You typically get 30-60 days to fix them, then pass.
The only way to truly “fail” is if your gaps are so severe the auditor refuses to issue a report. That’s rare.
What’s the difference between SOC 2 Type 1 and Type 2?
Type 1: Point-in-time audit. Auditor checks if your controls exist and are designed properly on a specific date. Faster (4-8 weeks) and cheaper, but less credible.
Type 2: Audit over 6-12 months. Auditor tests whether your controls actually work consistently over time. More expensive and time-consuming, but this is what enterprise customers actually want.
Start with Type 1 if you need something fast. Upgrade to Type 2 when enterprise buyers start asking.
Do I need a consultant for SOC 2?
No, but most first-timers get help. A consultant can:
- Do a readiness assessment (find your gaps before the auditor does)
- Help you write policies that match reality
- Prep evidence collection
- Answer questions during the audit
Expect $10K-50K depending on how much hand-holding you need.
You can DIY it if you’re technical and have time. Most startups hire help for the first audit, then manage renewals internally. Read more about SOC 2 and compliance consulting.
How much does SOC 2 cost for a small startup?
For a startup with 10-30 employees:
- Audit: $15K-30K
- Tools: $5K-15K/year
- Consultant (optional): $10K-25K
Total first year: $30K-70K if you’re starting from scratch.
Costs go up with company size, number of systems, and complexity.
How often do you need to renew SOC 2?
SOC 2 reports expire after 12 months (sometimes 6 months for Type 1). You need to get re-audited annually to maintain compliance.
The good news: renewals are easier and cheaper than your first audit. You’ve already built the program. Now you’re just proving it still works.
What happens if a customer asks for SOC 2 and I don’t have it?
Be honest. Say:
- “We’re working toward SOC 2. Expected completion: [date].”
- “Here’s what we do for security in the meantime: [list your controls].”
- “Can we share our security documentation and schedule a call to discuss?”
Some customers will wait. Some won’t. But lying or stalling is worse than being transparent about your timeline.
Start Here
Most startups fail SOC 2 audits because they’re missing the foundation: a security program that actually works day-to-day.
Before you schedule an audit, you need:
- A security controls checklist so you know what you’re actually doing (and what you’re missing)
- An incident response plan because every auditor asks for one
- The “Oh Sh!t Playbook” for when something actually breaks and you need to know what to do RIGHT NOW
Our Startup Security Kit has all three. Get the foundation in place first. Then SOC 2 is just documentation.
When you’re ready for hands-on help with the audit itself, we can help.