What is SOC 2?

SOC 2 is a security framework that proves your company handles customer data responsibly. It stands for System and Organization Controls 2, and it's issued by the American Institute of Certified Public Accountants (AICPA).

In practice, most startups encounter SOC 2 for the first time when an enterprise prospect asks "do you have a SOC 2 report?" before signing a contract. It's become the de facto security standard for B2B software companies.

Why does it matter?

Enterprise buyers — especially those in finance, healthcare, and regulated industries — need to know that the software they use won't expose their customers' data. A SOC 2 report is an independent audit that says your security controls are real and operating effectively. Without it, many deals simply won't close.

Type I vs Type II

There are two kinds of SOC 2 reports:

• Type I — A point-in-time snapshot. An auditor verifies that your security controls exist and are designed correctly as of a specific date. Typically takes 4–8 weeks and costs less. Enough to unblock most early-stage enterprise deals.
• Type II — Covers a period of time, usually 6–12 months. An auditor verifies that your controls actually operated effectively over that entire period. This is what larger enterprise buyers and regulated industries ultimately want.

The 5 Trust Service Criteria

SOC 2 is organized around five categories called Trust Service Criteria:

• Security (Common Criteria) — Required for every SOC 2 report. Covers access controls, monitoring, and incident response.
• Availability — Required if you make uptime commitments to customers (SLAs).
• Confidentiality — Required if you store or process sensitive business information.
• Processing Integrity — Required for fintech or data processing companies where accuracy matters.
• Privacy — Required if you collect, use, or store personal information about individuals.

Most startups only need Security plus one or two others. ReadySOC helps you track all five and mark which ones don't apply to your business.

What does the audit process look like?