What Is SOC 2? A Complete Beginner’s Guide for Companies in 2025
What Is SOC 2? A Complete Beginner’s Guide for Companies in 2025
In today’s world, nearly every business relies on SaaS platforms, cloud infrastructure, and third-party vendors to store or process sensitive data. As a result, security and trust have become non-negotiable. This is where SOC 2 comes in.
Whether you’re a startup preparing for your first enterprise customer or an established tech company refining your compliance program, SOC 2 gives you a structured way to prove you take security seriously.
This guide explains what SOC 2 is, why it matters, and how organizations can use it as part of their security strategy.
🔐 What Is SOC 2?
SOC 2 (System and Organization Controls 2) is a cybersecurity and compliance framework developed by the AICPA (American Institute of CPAs).
It focuses on how companies manage customer data based on five Trust Services Criteria (TSC):
- Security – Protection against unauthorized access (required for all SOC 2 audits)
- Availability – Ensuring systems are available and reliable
- Processing Integrity – Delivering accurate and timely system processing
- Confidentiality – Protecting confidential information
- Privacy – Handling personal data responsibly
Unlike SOC 1 (which is about financial controls), SOC 2 is all about technology, data protection, and security operations.
📄 SOC 2 Type I vs. Type II
Companies usually choose between two report types:
SOC 2 Type I
- Snapshot of controls at a specific point in time
- Ideal for early-stage companies or those preparing for enterprise clients
SOC 2 Type II
- Tests the operating effectiveness of controls over 3–12 months
- Required by most mid-enterprise and enterprise customers
- Proves that security controls are implemented AND functioning continuously
🧭 Why SOC 2 Matters for Modern Businesses
✔ Builds Customer Trust
SOC 2 is a recognized standard for security. Customers trust vendors who follow it.
✔ Unlocks Enterprise Deals
Many B2B businesses cannot close deals without a SOC 2 report.
✔ Reduces Security Risks
SOC 2 requires strong policies, procedures, monitoring, and access controls.
✔ Improves Operational Maturity
It enforces:
- Incident response planning
- Change management
- Vendor management
- Logging & monitoring
- Risk assessments
🛠 How SOC 2 Works: Key Components You Must Implement
Here are the core pillars you’ll need:
1. Policies & Procedures
- Information security policy
- Incident response policy
- Access control policy
- Change management policy
- Vendor management policy
2. Technical Security Controls
- MFA everywhere
- Encrypted data (in transit & at rest)
- Logging and monitoring tools
- Secure cloud configurations (AWS/GCP/Azure)
- Vulnerability scanning & patching
- Regular backups & DR tests
3. Governance & Risk Management
- Annual risk assessments
- Internal security reviews
- Asset inventory
- Employee onboarding/offboarding process
4. Training & Awareness
- Annual security training
- Phishing simulations
- Secure code and DevSecOps training
5. Documentation & Evidence Collection
For SOC 2, auditors need proof. This includes:
- Tickets
- Screenshots
- Logs
- System configurations
- Policy acknowledgments
🧪 How to Begin SOC 2 Compliance (Simple Roadmap)
Step 1: Define Your Scope
Decide:
- Which systems will be included
- Which Trust Services Criteria apply
Security (mandatory)
Availability / Confidentiality / Privacy / Processing Integrity (optional)
Step 2: Perform a Gap Assessment
List what’s missing:
- Policies?
- MFA?
- Logging?
- Vendor security reviews?
Step 3: Implement Controls
Bring your security posture up to SOC 2 standards.
Step 4: Perform Internal Testing
Evaluate whether the controls actually work.
Step 5: Choose an Auditor
Examples:
- A-LIGN
- Schellman
- Prescient
- BARR
- Johanson Group
Step 6: Collect Evidence
Auditors verify:
- Logs
- Access reviews
- Change management entries
- Backup test results
Step 7: Continuous Monitoring
SOC 2 Type II requires ongoing compliance—not a one-time effort.
🧰 Tools That Help Automate SOC 2
Modern compliance automation platforms simplify SOC 2:
- Vanta
- Drata
- Secureframe
- Sprinto
- Tugboat Logic
These tools integrate with GitHub, AWS, Google Workspace, Okta, and Slack to automate evidence collection and monitoring.
🚀 How Organizations Use SOC 2 in Real Life
Businesses get a SOC 2 audit to:
📌 Win Customer Trust
Share your SOC 2 report under NDA with clients.
📌 Improve Cloud Security
SOC 2 creates structure around:
- Access controls
- Infrastructure configurations
- Secure development lifecycle
📌 Reduce Breach Risk
By enforcing strong controls, SOC 2 reduces:
- Misconfigurations
- Unauthorized access
- Insider threats
- Vendor-based security issues
📌 Strengthen DevSecOps
SOC 2 aligns with automation:
- CI/CD security gates
- IaC scanning
- Secrets detection
- Vulnerability scanning
🏁 Conclusion: SOC 2 Isn’t Just a Certification — It’s a Security Culture
Achieving SOC 2 is a major step toward building a secure and trustworthy business.
More than a checklist, it shapes how your team thinks about security, governance, and reliability.
With the right tools, processes, and continuous monitoring, SOC 2 can transform your organization’s security posture and create a long-term advantage in the market.
If you're preparing for SOC 2 or want help establishing a roadmap, feel free to ask—I can help design one tailored to your company.