The advent of cloud-hosted applications has been proliferating the tech industry. And 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. 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.
But how much does this SOC 2 certification cost? Well, the answer depends on several factors which are listed below:
- 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
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. 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 note 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 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 the 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.
Total SOC 2 Type 1 & 2 Certification Costs
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 further 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.
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. do your research to calculate the costs before approaching the auditor.