Unlocking SOC 2 Cost: How Much Does it Cost in 2024?
Discover what goes into SOC 2 cost and how to optimize your budget
In today’s cloud-driven world, B2B SaaS companies need to showcase a strong security posture. SOC 2 compliance acts as a trusted signal, demonstrating your commitment to safeguarding customer data.
By prioritizing security, you unlock the potential to attract valuable partnerships and business opportunities.
But achieving compliance can come with a price tag.
Wondering “How much does SOC 2 cost in 2024?” This article will unlock the secrets of SOC 2 cost, breaking down the factors that influence the cost, and offering strategies to navigate your journey toward secure compliance.
SOC 2 Cost Breakdown
The total SOC 2 cost is a combination of time, resources, and strategic tech investments you make to tighten your security posture. Here’s a closer look at the key cost components:
- Auditor Fees: Consider this the fee you pay the security expert to meticulously assess your data security controls. Think of them as the security SWAT team, meticulously combing through your defenses.
- Resource Roundup: This involves dedicating your team’s valuable time and energy to establish robust protocols, create clear action plans, implement comprehensive training programs for employees, and meticulously document every step of the process.
- Tech Arsenal Upgrade: Depending on your current security posture, you might need to invest in additional security tools like firewalls, advanced data encryption solutions, or penetration testing services to solidify your defenses.
The SOC 2 Report Spectrum: Type 1 vs. Type 2 Audits
The cost also hinges on the specific type of SOC 2 report you require:
- SOC 2 Type 1: This report provides a snapshot of your security controls at a specific point in time. Imagine it as a quick security checkup, ensuring your controls are designed effectively.
- SOC 2 Type 2: This report goes a step further. Think of it as a deep security audit, not only assessing the design of your controls but also evaluating how effectively they operate over a period of 3–12 months. It’s a comprehensive dive into your daily security practices.
SOC 2 Cost, Type 1
A SOC 2 Type 1 audit evaluates an organization’s policies, procedures, and controls designed to safeguard customer data security. The cost can vary depending on several factors.
Cost Range
Cost ranges from $5,000 to $25,000. The $5,000 includes audits covering up to 3 Trust Service Criteria (TSCs), and it can increase to $25,000 or more for audits involving a broader scope (more than 3 TSCs).
Factors Affecting Cost
- Your organization’s size: Larger organizations tend to have more complex systems and controls, leading to potentially higher audit costs.
- Complexity of controls and systems: The more intricate your security measures, the more time and resources the auditor may require to assess them, impacting the cost.
- Audit readiness: If your organization has already established a strong security foundation and documented procedures, the audit might be more streamlined and cost-effective.
- Auditor selection: The qualifications and experience of the auditor can influence the cost. Reputable auditors with expertise in your industry may charge more but provide valuable insights.
SOC 2 Cost, Type 2
The cost of a SOC 2 Type 2 compliance can vary depending on several factors, similar to a Type 1 audit, but with a wider range due to the extended evaluation period. Here’s a breakdown:
Cost Range
Typically, SOC 2 Type 2 compliance costs $7,000 to $50,000.
Factors Affecting Cost
- Organization size: Larger organizations generally have more complex systems and controls, increasing the audit workload.
- Complexity of controls and systems: The more intricate your security measures, the more time and resources the auditor needs to assess them.
- Audit readiness: A strong existing security foundation with documented procedures can streamline the audit and reduce costs.
- Trust Service Criteria (TSCs) chosen: The number of TSCs included in the audit scope can impact the cost.
- Auditor type: Reputable auditors with relevant experience may charge more but offer valuable security insights.
Hidden Costs of SOC 2
While the audit itself has a cost range of $7,000 to $50,000, achieving SOC 2 compliance involves more than just the auditor’s fee. Here’s a summary of additional expenses:
- Lost Productivity: Employees dedicate time to the audit, potentially impacting their regular work.
- Staff Training: Security awareness training can cost $25 per user and additional costs for specialized training sessions.
- Security Tools: New tools like vulnerability scanners (costing $6,000-$25,000) may be needed.
- Readiness Assessment: Optional assessments by consultants start at $10,000 to identify gaps and strengthen controls.
- Legal Fees: Reviewing legal agreements (e.g., contractor agreements) for data handling compliance can incur legal fees.
Total SOC 2 Cost
Cost Range
The typical cost range for SOC 2 compliance is between $30,000 and $150,000.
But this range varies based on several factors:
- Organization size and complexity (larger and more complex = higher cost)
- Security control maturity (weaker controls require more work = higher cost)
- Number of Trust Service Criteria (TSCs) (more TSCs = more audit scope = higher cost)
- Audit type (Type 1 vs. Type 2) (Type 2 audits are more in-depth and costlier)
- Auditor selection (experienced auditors may charge more)
Beyond the initial cost, maintaining compliance involves ongoing monitoring:
- Internal Management: Manual monitoring requires internal resources and expertise.
- External Consultants: Hiring external help for periodic audits incurs additional costs.
- Monitoring Tools: Utilizing dedicated tools adds a software cost.
Optimizing Your SOC 2 Cost on Your Budget
Even with these additional costs, achieving SOC 2 cost doesn’t have to break the bank. Here are some battle-tested strategies to keep your SOC 2 compliance costs in check:
- Choosing the Right Auditor: Don’t be tempted by the cheapest option. A reputable auditor with experience in your industry is worth the investment. Their expertise can save you time and money in the long run by efficiently identifying areas for improvement.
- Embrace Automation: Look for tools that can streamline the process, like automated monitoring systems that continuously validate your compliance. Imagine having a dedicated security assistant constantly checking your defenses, freeing up your team’s time for core business activities.
- Leverage Free Resources: There’s a wealth of free and open-source security tools available. Take advantage of these resources to bolster your defenses without breaking the bank.
- Embrace Internal Expertise: If your company has security-savvy employees, leverage their knowledge. Encourage them to participate in the audit process and contribute their expertise
Building Your Security Dream Team
Not every company has a dedicated security department, but that doesn’t mean you can’t leverage internal talent. Here’s how to unlock the hidden potential within your team:
- Identify Your Security Champions: Do you have employees who are particularly tech-savvy or security-conscious? These individuals can be invaluable assets during the SOC 2 compliance process.
Encourage them to participate in security awareness training programs and involve them in discussions with the auditor. - Cross-Functional Collaboration: Security isn’t just an IT department responsibility. Every department, from Marketing to Sales, plays a crucial role in maintaining a strong security posture. Foster collaboration between departments to ensure everyone understands their role in data protection.
- Empowerment Through Training: Invest in security awareness training for your entire team. Equip them with the knowledge to identify and report phishing attempts, implement strong password hygiene, and understand the importance of data security.
By empowering your employees and fostering a culture of security awareness, you not only reduce the reliance on external consultants but also create a human firewall — your most valuable security asset.
Conclusion
SOC 2 cost isn’t cheap ($30k-$150k), but the benefits outweigh the cost. It builds trust with clients, positions you as a security leader, and streamlines operations. Plus, a security-aware culture emerges.
Invest strategically and achieve SOC 2 compliance without breaking the bank.
Ready to Streamline Compliance?
Building a secure foundation for your startup is crucial, but navigating the complexities of achieving compliance can be a hassle, especially for a small teams.
SecureSlate offers a simpler solution:
- Affordable: Expensive compliance software shouldn’t be the barrier. Our affordable plans start at just $99/month.
- Focus on Your Business, Not Paperwork: Automate tedious tasks and free up your team to focus on innovation and growth.
- Gain Confidence and Credibility: Our platform guides you through the process, ensuring you meet all essential requirements, giving you peace of mind.
Get Started in Just 3 Minutes
It only takes 3 minutes to sign up and see how our platform can streamline your compliance journey.
