Who Needs SOC 2 Certification?

If your business handles sensitive customer data, whether you’re a cloud service provider, SaaS company, or financial institution, you’re under increasing pressure to prove your security practices with SOC 2 certification. Clients, partners, and regulators expect clear assurances that their data is protected from cyber threats.

Without proper safeguards, you risk reputational damage, legal consequences, and financial losses from security breaches.

For example, in 2024, data breaches hit unprecedented levels, exposing over 1 billion records and costing businesses an average of $4.9 million per incident. With threats continuing to rise, SOC 2 certification is more important than ever for demonstrating that you meet strict security and privacy standards.

While the benefits of SOC 2 certification are clear, the compliance process can be complex and time-consuming. However, working with a cybersecurity compliance provider can make it significantly easier by guiding you through the requirements and helping you meet security benchmarks efficiently.

Keep reading to find out if your business needs SOC 2 certification and how to simplify the compliance process.

Key Takeaways

• SOC 2 certification is essential if your business stores, processes, or manages sensitive customer data.
• Industries like healthcare, finance, SaaS, and cloud services benefit significantly from SOC 2 compliance.
• Achieving SOC 2 compliance helps you build trust, meet vendor requirements, and strengthen your security posture.
• The certification process requires meeting five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy.
• Preparing for SOC 2 involves assessing your security controls, addressing vulnerabilities, and documenting policies.
• Compliance providers like BEMO can help simplify and speed up the SOC 2 certification process.

Table of Contents:

• Who Needs SOC 2 Certifications?

• Benefits of SOC 2 Certification

• SOC 2 Compliance Requirements

• How to Prepare for SOC 2 Certification

• How BEMO Helps You Get SOC 2 Certified

• Is SOC 2 Certification Worth It for Your Business?

Who Needs SOC 2 Certifications?

While SOC 2 certification isn’t legally required, many businesses rely on it to meet security standards, gain client trust, and satisfy vendor requirements.

If your company stores, processes, or manages customer data, especially in an industry with strict security expectations, SOC 2 compliance can provide significant benefits.

Here’s a look at the types of businesses that benefit most from SOC 2 certification:

Government Contractors and Public Sector Vendors

If you provide cloud services, software solutions, or IT infrastructure to government agencies, you must meet strict security standards. While some contracts require FedRAMP compliance, SOC 2 certification serves as additional validation of your security best practices.

Healthcare Organizations and HealthTech Companies

HIPAA sets regulatory standards for healthcare providers, but SOC 2 compliance adds another layer of assurance for businesses that store or process medical data.

This includes electronic medical record (EMR) providers, health analytics firms, telemedicine platforms, and cloud-based healthcare services. Certification strengthens your security measures and demonstrates your commitment to protecting patient data.

Cloud Service Providers and Data Centers

If you offer cloud storage, hosting, or colocation services, ensuring the security of your infrastructure is critical. SOC 2 certification helps you prove that you have the right controls in place to protect customer data and maintain high availability.

SaaS Companies and Managed IT Providers

Software as a Service (SaaS) companies, analytics providers, and managed IT service firms handle vast amounts of customer data. Many enterprise clients require SOC 2 compliance before signing contracts, making certification essential for maintaining business relationships.

Financial Services and Payment Processors

Banks, investment firms, payment processors, and financial technology (FinTech) companies deal with highly sensitive financial data. SOC 2 certification shows that your organization meets strict security, availability, and confidentiality standards, helping reduce fraud and data breach risks.

Human Resources and Payroll Services

HR technology platforms, payroll processors, and employee benefits administrators manage sensitive employee information, including Social Security numbers and financial details. SOC 2 certification reassures your business clients that you meet rigorous security and privacy standards.

E-Commerce Platforms and Online Marketplaces

Retailers, payment gateway providers, and digital marketplaces store large amounts of customer data, including payment details and purchase histories. SOC 2 compliance helps you build customer confidence and meet industry security expectations.

Legal, Accounting, and Professional Services Firms

Law firms, accounting firms, and business consulting agencies handle highly confidential client data. SOC 2 certification demonstrates your commitment to security, giving clients peace of mind that their sensitive documents and financial records are well protected.

Cybersecurity and IT Security Firms

If you specialize in cybersecurity, vulnerability assessments, or penetration testing, obtaining SOC 2 certification reinforces your credibility. By following the same security standards you recommend to clients, you prove that your internal security controls are strong.

Marketing and Advertising Technology Companies

Digital marketing agencies, customer data management platforms, and advertising technology firms collect large amounts of user data. SOC 2 compliance assures business clients and advertisers that customer information is stored and processed securely.

Logistics, Supply Chain, and Transportation Technology Companies

Supply chain management platforms, logistics tracking systems, and transportation software providers handle business-critical data. SOC 2 certification ensures you have security measures in place to protect trade secrets, shipping data, and customer records from cyber threats.

Educational Technology (EdTech) Platforms

Online learning platforms, student data management systems, and digital education services collect and store sensitive student information. SOC 2 certification provides assurance that your security controls align with privacy requirements and industry best practices.

If your business falls into one of these categories, getting SOC 2 certified is essential. But why does it matter? Let’s take a closer look at the benefits of SOC 2 certification.

Benefits of SOC 2 Certification

SOC 2 certification provides major advantages if your business stores, processes, or manages sensitive customer data. It strengthens your security practices, builds trust, supports regulatory compliance, and opens up new business opportunities.

Here’s why getting SOC 2 certified is a smart move for your business:

Builds Trust with Customers and Stakeholders

Achieving SOC 2 compliance shows your customers, business partners, and stakeholders that you take data security, confidentiality, and availability seriously. This trust is especially important for cloud service providers, SaaS companies, and IT service firms that depend on customer confidence to maintain long-term relationships.

Demonstrates Commitment to Data Security

Going through the SOC 2 audit process requires you to establish, document, and follow strict security controls. Meeting these standards proves that your company takes cybersecurity seriously and follows industry best practices. This commitment can be a deciding factor for clients and partners when choosing a service provider.

Provides a Competitive Advantage

In industries where data security is a major concern, such as healthcare, finance, technology, and legal services, SOC 2 certification sets you apart from competitors who don’t have it. Many enterprise clients require vendors to be SOC 2 compliant before signing contracts, making certification a key factor in securing high-value deals.

Supports Compliance with Other Regulations

SOC 2 compliance aligns with several other security and privacy frameworks, making it easier to meet multiple regulatory requirements at once. For example:

• Healthcare organizations can use SOC 2 controls to support HIPAA compliance and protect patient health information (PHI).
• Global businesses can align SOC 2 controls with ISO 27001, an internationally recognized security standard.
• Financial service providers can integrate SOC 2 practices with PCI DSS requirements for secure payment processing.

Offers Valuable Insights into Risk and Security Posture

The SOC 2 audit evaluates your security policies, risk management processes, and operational controls. The results give you a detailed look at potential vulnerabilities and highlight areas for improvement. With these insights, you can refine your security strategies, allocate resources more effectively, and strengthen your overall risk management.

To take advantage of SOC 2 compliance, you first need to meet the necessary requirements. Let’s take a closer look at what that involves.

SOC 2 Compliance Requirements

SOC 2 compliance is built around five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. The security principle is mandatory for all SOC 2 reports, while the other four are optional based on your business’s specific needs and service commitments.

Let’s take a closer look at each one:

Security (Mandatory for All SOC 2 Reports)

The security principle focuses on protecting your systems and data from unauthorized access, use, or modification. To meet this requirement, you’ll need strong access controls, system monitoring, and change management procedures to detect and prevent security threats.

Other key security measures include:

• Risk assessment and mitigation strategies to handle business disruptions and external threats.

• Intrusion detection and security monitoring to spot suspicious activity.

• Encryption and firewall configurations to protect sensitive data from unauthorized access.

Availability

The availability principle ensures that your systems, applications, and data remain accessible to authorized users when needed. This is especially important if you run a cloud service, SaaS platform, or data center, where downtime can have a major impact on customers.

To meet availability requirements, you should:

• Monitor system capacity and performance to prevent overloads.

• Implement redundancy and failover systems to minimize downtime.

• Develop a documented incident response plan to restore service quickly in case of an outage.

Processing Integrity

Processing integrity ensures that your systems process data accurately, completely, and promptly. This is critical if your business handles financial transactions, data analytics, or automated processes where errors could cause financial or operational issues.

To maintain processing integrity, you should:

• Implement validation checks to detect and correct data entry errors.

• Maintain detailed logs of system inputs and processing activities to track transactions.

• Regularly test system accuracy and consistency to ensure expected outputs.

Confidentiality

The confidentiality principle ensures that sensitive business and customer data is only accessible to authorized users. This is especially important for financial institutions, healthcare providers, and businesses handling personally identifiable information (PII) or proprietary data.

To meet confidentiality requirements, you must:

• Classify and identify confidential data to establish appropriate security levels.

• Enforce strict access controls to limit data exposure.

• Implement secure data retention and disposal policies to prevent unauthorized disclosures.

Privacy

The privacy principle focuses on how you collect, use, store, share, and dispose of personal information. If your business handles consumer data, patient records, or user information, you must comply with relevant privacy laws and regulations. To uphold privacy standards, you should:

• Develop clear and transparent privacy policies that align with the AICPA’s Generally Accepted Privacy Principles (GAPP).

• Verify that third-party vendors follow legal and ethical data collection practices.

• Implement user consent and data access controls to allow individuals to manage their personal information.

How to Prepare for SOC 2 Certification

Getting ready for SOC 2 certification takes a structured approach to ensure you meet the necessary security standards. Proper preparation not only makes the audit process smoother but also reinforces your commitment to data security.

Here’s what you need to do:

Assess Your Current Security Controls

Start by evaluating your existing security controls to see where you stand. This assessment should cover:

• IT Infrastructure: Make sure your systems are properly configured, monitored, and secured.
• Data Management Practices: Review how you store, encrypt, and retain data.
• Access Controls: Ensure that access to sensitive information is restricted based on user roles.
• Employee Security Training: Check if your staff understands and follows security policies.

Use the SOC 2 Trust Services Criteria as a guide to identify strengths and weaknesses in your current security setup.

Identify Gaps and Fix Them

Once you’ve assessed your security controls, pinpoint any areas that don’t meet SOC 2 requirements. Then, create a remediation plan that prioritizes high-risk vulnerabilities and key security improvements. Common fixes include:

• Implementing multi-factor authentication (MFA) to strengthen access controls.
• Updating security policies to align with SOC 2 requirements.
• Enhancing monitoring and alerting to detect and respond to security incidents.
• Ensuring data encryption both in transit and at rest.

Taking care of these issues before the audit will prevent delays and make the compliance process much smoother.

Document Policies and Procedures

SOC 2 auditors will review your policies and procedures to ensure they align with the Trust Services Criteria. That’s why it’s essential to have all relevant policies clearly documented. These should include:

• Data Security Policies: Define how you store, process, and protect data.
• Access Control Policies: Specify who can access sensitive data and under what conditions.
• Incident Response Plans: Outline how you detect, report, and handle security incidents.
• Employee Onboarding and Offboarding Policies: Ensure security measures are in place when hiring or terminating employees.

Policies should be updated regularly to reflect changes in business operations, regulations, or emerging security threats.

Train Your Employees

Your employees play a key role in SOC 2 compliance. Provide regular security training to ensure they understand:

• What SOC 2 is and why it matters.
• Best practices for handling sensitive data.
• How to recognize phishing and other cyber threats.
• Proper password management and authentication protocols.

By making security training a priority, you can reduce the risk of human error leading to security breaches.

Choose the Right Auditor

Picking a qualified SOC 2 auditor is a crucial step in the certification process. The audit must be conducted by a licensed CPA firm with experience in SOC 2 assessments.

When selecting an auditor, consider:

• Industry Expertise: Choose an auditor with experience in your sector.
• Reputation and Track Record: Look for firms with strong client feedback and a proven SOC 2 background.
• Communication Style: Make sure the auditor provides clear guidance and feedback throughout the process.
• Cost and Timeline: Understand pricing and audit duration before committing.

Getting the auditor involved early helps set expectations and ensures you’re fully prepared for the audit.

Keep SOC 2 Compliance an Ongoing Process

Following these steps will give you a solid foundation for SOC 2 certification. Remember, maintaining and improving your security controls is an ongoing effort.

Regularly review and update your policies, procedures, and training programs to stay compliant and adapt to new security threats. While preparing for SOC 2 certification can seem overwhelming, there are services available that can simplify and streamline the process.

How BEMO Helps You Get SOC 2 Certified

Achieving SOC 2 certification can be complex and time-consuming, especially if you don’t have a dedicated compliance team.

BEMO simplifies the process with a comprehensive IT, security, and compliance platform designed to help you meet SOC 2 requirements efficiently.

Here’s how BEMO makes SOC 2 compliance easier for you:

• Automated Compliance Processes: Reduces manual effort by streamlining compliance tasks and tracking security controls.
• Progress Tracking and Variance Detection: Monitors your compliance status in real time and flags any discrepancies that could delay certification.
• Support for Multiple Frameworks: Aligns with SOC 2, HIPAA, ISO 27001, and other security frameworks for broader compliance coverage.
• Simplified Coordination With Auditors: Helps manage communication with penetration testers and auditors, making the certification process more seamless.
• Routine Penetration Testing: Schedules third-party penetration tests twice a year—first to identify vulnerabilities, then to verify they’ve been fixed.
• Flexible Service Options: Lets you choose between fully managed or self-managed compliance solutions based on your budget and internal resources.

Time is often a critical factor in compliance efforts. With BEMO, you can implement security solutions in minutes and achieve SOC 2 compliance in weeks, helping you meet vendor and contractual requirements faster.

Why Businesses Choose BEMO for SOC 2 Compliance

BEMO removes much of the complexity from SOC 2 certification by providing a structured, technology-driven approach to compliance.

Whether you need hands-on support or prefer a self-managed solution, BEMO offers the tools, expertise, and automation to help you navigate the certification process efficiently.

By using BEMO’s platform, you can save time, reduce compliance risks, and build a stronger security foundation, ensuring you meet SOC 2 requirements with confidence.

With over 1,200 secured businesses and a strong reputation for client satisfaction, BEMO is a trusted partner for organizations seeking SOC 2 certification.

Is SOC 2 Certification Worth It for Your Business?

If you handle sensitive data, SOC 2 certification is a crucial investment. While not legally required, it has become an industry standard for businesses in finance, healthcare, SaaS, and cloud services.

The certification process strengthens your security practices, supports regulatory compliance, 

and builds customer trust, all factors that directly impact business success. With rising cyber threats and increasing vendor requirements, achieving SOC 2 compliance helps you stay competitive.

If you’re looking for an efficient path to certification, working with a compliance partner like BEMO can simplify the process and ensure long-term security.

Secure your business with SOC 2 compliance. Get started with BEMO today and book a demo!

Frequently Asked Questions

What Is the Difference Between SOC 2 Type I and SOC 2 Type II?

SOC 2 Type I assesses whether an organization has the required security controls in place at a specific point in time. SOC 2 Type II evaluates the effectiveness of those controls over a period of time, typically 3 to 12 months. Type II is more comprehensive and provides stronger assurance to clients.

Can Small Businesses Benefit from SOC 2 Certification?

Yes, small businesses handling customer data can benefit from SOC 2 certification, as it enhances credibility, meets vendor requirements, and improves cybersecurity posture. Compliance providers can help streamline the process for businesses with limited resources.

How Long Does It Take to Achieve SOC 2 Certification?

The SOC 2 certification process typically takes between three to six months, depending on the organization’s existing security controls and preparedness. Using an automated compliance platform can reduce this timeline significantly.

Is SOC 2 Compliance Required for Companies Outside the U.S.?

While SOC 2 is an American standard, it is widely recognized internationally. Many global companies adopt SOC 2 to meet customer expectations, align with security best practices, and gain a competitive edge.

What Happens If a Company Fails a SOC 2 Audit?

If a company fails a SOC 2 audit, the report will highlight security gaps that need remediation. Organizations can address these weaknesses and undergo a follow-up audit to achieve compliance.