Every passing day, the world is witnessing a new technological advancement. The advent of cloud-hosted applications has been proliferating the tech industry. SOC 2 compliance is a formidable way for B2B SaaS companies to ensure their customers that they have the right security measures in place to protect essential customer data. But this SOC 2 compliance isn’t cheap.
Yes, you read it right! The SOC2 compliance is definitely a useful thing, but it won’t fit into your pocket easily. It surely demands a good amount of money. However, the money spent on SOC 2 compliance isn’t worthless, it’s an investment for the company. Read the article carefully till the end to know all about SOC2 certification pricing, if you are planning to get one.
Factors That Affect the SOC2 Certification Cost
So now the question arises, how much does the SOC 2 certification cost?
Well, the price of SOC2 certification is not fixed and is influenced by multiple factors. Here’s the list of essential factors that affect the pricing of SOC2 certification!
- The type of attestation required by the company: SOC 2 Type 1, Type 2, or both
- Size of the company – SOC compliance cost increases as the company’s size grow
- Scope of the audit – Audit costs are bound to increase according to the number of Trust Service Criteria
- The complexity of the firm – With more complex systems and controls, the costs also escalate
- Security tools – More SOC tools typically mean added cost as well
These factors play a central role in deciding on the cost of SOC2 certification cost. Now let’s dig a bit deeper into the SOC2 Type 1 certification in the subsequent section.
What is the Cost of a SOC 2 Type 1 Certification?
Generally, in SOC 2 Type 1 compliant audit, the auditing firm reviews the compliance policies and controls. Similar to Cisco Certification, the SOC2 certificate helps in creating trust between the users. This is to ensure that the company has robust security measures to keep customer data safe from breaches and theft. The charges here are determined by the organization’s size, complexity, audit readiness, and the type of auditing firm selected.
However, it is to be noted that the anticipated initial costs for the SOC 2 Type 1 audit can come in the range of $8000 and $30000. This can further go up if you hire the services of an established auditing firm. You must remember that SOC 2 certification is not only about your organization’s security measures and safety practices but also about obtaining certification from a well-known CPA.
These costs do not include the cost of assessing readiness, purchasing additional security technologies, and the lost productivity costs of involving an in-house team in the lead-up to and after the audit. We have discussed these cost overheads in greater detail later in this post.
What is the Cost of a SOC 2 Type 2 Certification?
The assessment period of a SOC 2 Type 2 certification is longer than SOC 2 Type 1 and generally consists of 3 to 12 months. This means the cost of auditing is also more than Type 1, which can easily go up from $20000 to $50000. Like SOC 2 Type 1, the auditing costs again depend on several factors like size, complexity, and audit readiness of your organization.
Why is There a Variation in SOC 2 Type 1 & 2 Compliance Cost?
Typically, auditor expenses rise in tandem with the number of employees in the business and the intricacy of various systems and controls in place in the company. For example, a SaaS company with fewer than 25 workers will have less complicated systems and controls to review during the audit. But a company with more than 2500 employees will have more complicated systems for sure.
As a result, auditors have to spend more time and resources to audit and thus, the costs will vary. Moreover, which auditor is being hired is a significant factor contributing to the compliance costs. It’s no secret that the services of auditing firms like Deloitte or PWC are far more expensive. These firms might be potentially out of reach for startups and smaller business enterprises.
How much does SOC2 Compliance cost?
However, it is also important to avoid selecting the auditing firms with the cheapest rate card. Credibility and experience in the relevant field are as crucial as costs. You will need to compromise on the quality of the service if you want SOC2 at a lesser price.
Total SOC 2 Type 1 & 2 Certification Costs
There’s no doubt that SOC certification is very expensive and can burn a hole in your pocket. To give you a rough idea of how much will SOC2 type 1 and 2 certification will cost, we have calculated the average price of both SOCs. Adding the average SOC 2 certification costs for both Type 1 & Type 2, you can expect to invest an amount between $30000 to $150000.
How Can You Lower the SOC 2 Certification Cost?
You can save thousands of bucks and a significant amount of time by using a cutting-edge SOC 2 automation software package. The software is designed to save the time and money spent on audit preparation and compliance management.
The software suite includes a built-in compliance policy archive, advanced security training for staff, and readiness evaluations. All these services come as part of the package, and you won’t have to pay any consultation fees for these services.
You can also fast-track the process to get a compliance certificate by automatically gathering data for the auditor if you still go for an agency auditing.
Conclusion
SOC 2 certification is a way to let your customers and clients know that you are capable of protecting their valuable data and information. The certification is a mark of trust for your company. So never take it lightly when it comes to SOC 2 auditing. Also, we will suggest you do your research considering the factors mentioned above and calculate the costs before approaching the auditor.
