A Core Business Solutions Guide to Understanding and Preparing for SOC 2 Compliance
What is SOC 2?
SOC 2 is an independent assessment—performed by a licensed CPA firm—that evaluates how well your organization safeguards information. The audit measures your controls against established Trust Services Criteria in areas such as:
- Security (required for every SOC 2)
- Availability
- Confidentiality
- Processing Integrity
- Privacy
For many small businesses, SOC 2 is a way to prove to customers and partners that you take data protection seriously and that your internal processes meet industry expectations.
What is a “control”?
A control is simply a policy, process, or technical safeguard put in place to achieve a specific objective.
Example:
“Access to systems containing customer data is restricted to authorized employees using multifactor authentication.”
Controls help demonstrate that your organization manages security risks responsibly. Building strong, well-defined controls is a key part of SOC 2 readiness.
Why does SOC 2 matter—and who cares about it?
Companies increasingly rely on vendors, cloud software, and other external service providers. Whenever an organization shares data with you, they also share risk. Instead of conducting their own audit, customers often request a SOC 2 report because it provides third-party assurance from an independent CPA.
Small businesses benefit because:
- You complete one audit instead of multiple customer audits
- You accelerate sales cycles by meeting security requirements early
- You establish credibility with enterprise customers
- A report can quickly become a differentiator—especially for technology, SaaS, and service-based businesses.
How long does it take to get a SOC 2 report?
Realistically, most small businesses complete their first SOC 2 Audit in 1–12 months. The timeline depends on:
- Current level of security maturity
- Team availability
- Complexity of the environment
- Whether you’re preparing for a Type 1 or Type 2 exam
General SOC2 audit preparation steps include:
1. Define Scope – System boundaries, Trust Services Categories, audit period
2. Select Vendors – Audit firm, compliance software (optionally), and (optionally) a consultant
3. Plan the Project – Milestones, responsibilities, and deadlines
4. Perform a Readiness / Gap Assessment – define controls and Identify improvements needed before the audit
5. Remediate Gaps – Implement or strengthen required controls
6. Develop the System Description / Narrative
7. Submit Evidence to Your Auditor
8. Participate in Walkthrough Meetings
9. Receive Final SOC 2 Report
The more prepared your organization is, the faster the audit will go.
How much does SOC 2 cost?
SOC 2 pricing varies widely—ranging from $3,000 to $60,000 for small businesses—depending on:
- Size of your organization
- Complexity of your systems
- Type of audit (Type 1 vs. Type 2)
- Level of support needed
- The reputation and fee structure of the audit firm
In general:
- Lower-cost firms focus on speed and basic compliance
- Midrange firms offer strong service, clearer reporting, and direct support
- Premium firms carry major-brand reputations and higher prices
At Core Business Solutions, we help you choose the right scope and approach so you avoid unnecessary expense.
What’s the difference between SOC 2 Type 1 and Type 2? Which should I choose?
SOC 2 Type 1: Evaluates whether your controls are designed appropriately at a single point in time.
SOC 2 Type 2: Evaluates both the design and effectiveness of your controls over a period of time (typically 3–12 months).
How to decide:
Type 1 first: Ideal if you want a faster, more affordable starting point. Many small businesses choose this path to get a report into customers’ hands quickly, then move to Type 2 later.
Type 2 directly: Ideal if your customers require operating-effectiveness proof right away, or if you already have strong controls in place.
Is a SOC 2 audit required annually?
There’s no formal renewal requirement, but customers generally expect a report that’s no more than 12 months old. For practical purposes, most organizations complete a SOC 2 audit annually to maintain trust and meet customer expectations.
How do I choose which Trust Services Categories to include?
SOC 2 allows you to tailor your audit to the needs of your business. Here’s how to think about each category:
- Security: (Required) The core of SOC 2—covers access controls, monitoring, incident response, and system protection.
- Availability: Choose this if customers rely on you for uptime or if your service is mission-critical.
- Confidentiality: Appropriate when you handle proprietary, sensitive, or restricted data—common for B2B SaaS providers.
- Processing Integrity: Best for organizations that must prove data accuracy, completeness, and reliability (e.g., FinTech, data processing, AI platforms).
- Privacy: Applies when you process personal information governed by specific consent and handling requirements (e.g., PHI, PII, regulated industries).
Core Business Solutions can help you select the right SOC 2 categories based on your customers’ expectations and your service model.
Is SOC 2 the same as ISO 27001?
No. Although both frameworks focus on information security, they differ significantly:
- It is commonly used in the U.S.; it Is flexible in that you define your own set of controls to meet the standardized criteria.
- It is a historical attestation report over certain examination dates with no expiration.
- Results in a lengthy (often 30-100 pages) report with detailed system description information and results of audit testing
- Is more commonly seen for European countries or other markets internationally
- Has more standardized requirements, ongoing certification with surveillance audits, and validates an established Information Security Management System (ISMS)
- Is a renewable certification with an expiration date.
- Results in certificate documentation without detailed descriptions of the system or testing results.
Many software companies pursuing the US markets undergo SOC 2 first, then adopt ISO 27001 as they scale internationally. Others choose to undergo each audit simultaneously in order to leverage effort and evidence across multiple frameworks. To learn more about the differences, read the Differences between SOC 2 and ISO 27001 article here.
How is SOC 1 different from SOC 2? Do I need both?
A SOC 1 audits focus on financial reporting controls relevant to your customers’ financial statement audits.
SOC 2 focuses on information security and system reliability.
Most small businesses need SOC 2, unless they directly impact customers’ financial statements (e.g., payroll processors, transaction processors).
Can I publish my SOC 2 report publicly?
No. SOC 2 reports contain sensitive internal information and are restricted by the AICPA. You can share them securely with:
- Current customers
- Prospective customers
- Partners or regulators who understand how to interpret SOC reports
- Many companies use an NDA or secure data room to distribute the report.
You may publicly announce that you have completed a SOC 2 examination, and once completed and you have registered, you may post the SOC logo to your website.
You may also engage the audit firm to issue a SOC 3 report (essentially a summarized recap of the SOC 2 report), which may be shared publicly.
Can one team help with both SOC 2 readiness and the audit?
No, Due to CPA independence rules, the same team cannot perform both your implementation and your SOC 2 audit. An auditor cannot “audit their own work.”
However, you can use:
- A consultant, like Core Business Solutions, to help you prepare
- A CPA firm to perform the independent audit
Core Business Solutions partners with trusted SOC 2 audit firms, such as Render Compliance, so you can complete both phases without conflict of interest.
Need Help Preparing for SOC 2?
Core Business Solutions specializes in helping small businesses build practical, right-sized compliance programs based on real-world operational needs—not unnecessary complexity.
