SOC 2 Isn’t Just for Big Companies Anymore
Five years ago, SOC 2 compliance was something only enterprise SaaS companies worried about. Today, small businesses are getting asked for SOC 2 reports by their clients, partners, and vendors – and if you can’t produce one, you’re losing deals.
The good news: SOC 2 for a small company (under 100 employees) is achievable without a massive budget or a dedicated compliance team. Here’s what’s actually involved.
What SOC 2 Is (and Isn’t)
SOC 2 is an audit framework developed by the AICPA that evaluates how your company protects customer data. It’s based on five Trust Service Criteria:
- Security (required) – Protection against unauthorized access
- Availability – Systems are operational and accessible as committed
- Processing Integrity – System processing is complete, valid, and accurate
- Confidentiality – Information designated as confidential is protected
- Privacy – Personal information is collected, used, and retained appropriately
Most small companies start with Security only (sometimes plus Availability). You don’t need all five to get your SOC 2 report.
Type I vs. Type II – Which Do You Need?
- Type I – A point-in-time assessment. “Are your controls designed properly as of this date?” Faster to achieve, good for getting your foot in the door.
- Type II – An assessment over a period (usually 6-12 months). “Are your controls actually working over time?” This is what most enterprise clients ultimately want to see.
Our recommendation: Start with Type I to prove you have the controls in place, then move to Type II once you’ve been operating under those controls for 6+ months.
What You Actually Need to Implement
For a small business, SOC 2 readiness typically requires:
Technical Controls
- Multi-factor authentication (MFA) on all systems
- Endpoint protection and monitoring
- Encrypted backups with tested restore procedures
- Access controls – role-based, least privilege
- Logging and monitoring of system access
- Vulnerability scanning and patch management
- Network security (firewalls, segmentation)
- Encryption for data at rest and in transit
Administrative Controls
- Written security policies and procedures
- Risk assessment process
- Vendor management program
- Incident response plan
- Employee security training
- Background checks for employees with data access
- Change management procedures
Operational Controls
- Onboarding/offboarding procedures
- Regular access reviews
- Business continuity and disaster recovery planning
- Monitoring and alerting
The Timeline for a Small Company
Realistic timeline from “we need SOC 2” to “we have our report”:
- Weeks 1-2: Gap assessment – understand where you are vs. where you need to be
- Weeks 3-8: Remediation – implement missing controls, write policies, deploy tools
- Weeks 9-10: Readiness review – verify everything is in place
- Weeks 11-14: Type I audit (conducted by your chosen auditor)
Total: roughly 3-4 months for Type I. Add 6-12 months of operating under controls before your Type II audit.
What It Costs
For a small company, expect:
- Readiness and implementation: This is where an MSP like us comes in – we implement the technical controls, write the documentation, and get you audit-ready
- Audit fees: $15,000 – $40,000 depending on scope and auditor (paid directly to the audit firm)
- Ongoing maintenance: Continuous monitoring, evidence collection, and annual re-certification
The ROI is clear: one enterprise deal that requires SOC 2 typically pays for the entire compliance investment.
How Seashore IT Helps
We handle everything except the audit itself:
- Gap assessment against SOC 2 Trust Service Criteria
- Technical control implementation (MFA, monitoring, encryption, backups)
- Policy and procedure documentation
- Evidence collection systems
- Employee training
- Auditor coordination and preparation
- Ongoing compliance maintenance between audit cycles
We’ve helped healthcare companies achieve SOC 2 with HIPAA alignment – building controls that satisfy both frameworks simultaneously so you’re not paying twice for overlapping requirements.
If you’re getting asked for SOC 2 by clients or partners and don’t know where to start, reach out. We’ll give you an honest assessment of what it’ll take for your specific situation.