Key Takeaways

• Achieve SOC 2 compliance to show clients your business takes data security seriously and stands out from the crowd.
• Follow a clear framework of security controls and regular audits to keep your systems and processes in check.
• Protect customer trust by building a culture where privacy and responsibility matter every day.
• Learn how passing a SOC 2 audit can open doors to bigger clients and new growth opportunities.

B2B SaaS companies must ensure their customers’ data are always secure. Read the following information to learn what you need to become compliant with the SOC 2 audit requirements—and how SOC 2 compliance automation software can simplify the process.

What Is SOC 2?

SOC 2, or System and Organizational Controls 2, is a compliance standard endorsed by the AICPA for organizations seeking to evaluate their data security controls and management practices. This report is particularly valuable for businesses that require an audit of their data security measures. The SOC 2 framework outlines essential criteria that govern the handling of customer data, focusing on key principles such as availability, confidentiality, security, privacy, and processing integrity.

What Is a SOC 2 Compliance Report?

This report is generated following a SOC 2 audit, which assesses whether the organization has effective controls in place over the specified Trust Services Criteria. Conducted by an independent external auditor, the audit aims to verify the organization’s compliance with current data security control and management standards. The resulting report provides reassurance to customers of the audited organization regarding its commitment to data security and overall management practices.

 Who Needs SOC 2 Compliance?

This compliance is needed by companies that keep their customers’ data in the cloud. This is the reason it relates mainly to cloud vendors and SaaS companies.

Why Do You Need SOC Type 2 Compliance?

There are many reasons why SaaS businesses should be SOC 2 compliant.

SOC 1 and SOC 2 Compliance

Both compliance requirements address the controls that an organization implements to safeguard its data security. However, the frameworks for each type of report differ significantly. The SOC 1 report is concentrated on the internal controls related to financial information, which can impact the financial reporting of clients. In contrast, the SOC 2 report is designed to evaluate an organization’s ongoing processes for protecting customer data, based on the five trust criteria.

SOC 2 Type 1 and SOC 2 Type 2

You need a SOC 2 compliance platform report if you do not handle your customers’ financial data. You must next decide whether you need Type 1 or Type 2 compliance reports under this category. The decision is based on what the report your customers demand. A Type 1 report confirms controls are working at a fixed point in time. Type 2 gives assurance of control over a longer period.

Steps to Get Your SOC 2 Compliance

Step 1: Understand the SOC 2 Trust Service Criteria

A SOC 2 audit evaluates the business based on the five trust services criteria. A company may base its report only on one principle, more than one principle, or all five principles.

Security – This should be included in all SOC 2 audit reports. It requires the business to have access control, firewalls, authorized controls, and operational controls over data applications.

Availability – This principle assesses an organization’s preparedness for complying with the performance and operational uptime standards. It ensures the company has effective controls for handling security incidents and can recover data after a disaster. Its network performance monitoring setup is evaluated during this audit.

Confidentiality – A company must demonstrate that it has excellent safeguards to secure its customers’ data.

Processing Integrity – This principle assesses the organization’s capability to process its cloud-based data reliably, accurately, and on time. It also covers quality assurance procedures. This principle should be included for auditing if your company handles critical financial operations, such as payroll services, financial processing, and tax assessment.

Privacy – If you store personally identifiable information of your users, you are responsible for ensuring sufficient safeguards for protecting this data. The auditor will check your data encryption, access control, and multistep ID authentication compliance.

Step 2: Which Trust Service Criteria Apply to You?

Before going for the SOC 2 compliance auditing, you should determine your organization’s criteria for reporting your customer demands. SaaS firms that store the personal data of their users should be evaluated on Privacy and Availability principles. Due to the selection of specific principles from the trust services criteria, each report is unique to the audited company.

Step 3: Internal Risk Assessment

Assess the risk related to the location, growth, and information security practices. You will also need to assess the risk facing your vendors and business partners.

 Step 4: Gap Analysis and Remediation

Conduct a gap analysis to understand the controls and policies you already have. Any data merging should be done only after at least one review.

Step 5: Mapping & Coverage of Internal Controls

Internal control is needed to manage the criterion of the selected TSC. Establish policies and procedures for this purpose. Next, you must conduct a mapping exercise to show you have the controls in place to meet the selected criterion.

Step 6: Continuous Monitoring

It is a critical step of your SOC 2 compliance journey. This should be an ongoing activity where you test your controls, fill the gaps, test the improved setup again, and gather evidence continuously for compliance. This monitoring system should not only give you proof of compliance but also alert you when the required steps are done incorrectly or not taken at all. 

Step 7: Audit SOC 2

Get this report only from a certified auditor who knows the SOC 2 requirements and auditing process.

Frequently Asked Questions

What is SOC 2 compliance and why does it matter for Shopify merchants?

SOC 2 compliance is a set of industry-recognized standards that show your business can keep customer data safe and private. For Shopify store owners, proving SOC 2 compliance helps gain trust with shoppers and business clients. It shows you value security and are ready to work with partners who require high standards.

How can SOC 2 compliance help my Shopify business attract larger clients?

Many enterprise brands and B2B partners require SOC 2 as a minimum before sharing data or signing contracts. By being SOC 2 compliant, your Shopify store instantly stands out as a trustworthy candidate for bigger deals. This opens the door to new partnerships and can speed up sales cycles.

What steps should a Shopify business take to start the SOC 2 process?

First, review your current data handling and security policies—see where you meet standards and where you don’t. Next, set up the required security controls (like access management and data monitoring). Finally, bring in an outside auditor to review your processes and issue the SOC 2 report.

How long does it usually take to achieve SOC 2 compliance?

The timeline depends on your starting point, but most Shopify businesses need three to six months if starting from scratch. Preparation, implementing controls, and gathering documentation can take several weeks. Working with an experienced consultant can help speed things up and avoid common hurdles.

Is SOC 2 only for SaaS businesses, or should Shopify stores care too?

This is a common myth—any business handling sensitive customer data, including ecommerce stores, can benefit from SOC 2. Shoppers and B2B clients alike want proof their data is safe, especially with rising cybersecurity risks in online retail.

What are the main costs involved in SOC 2 compliance for Shopify merchants?

Direct costs include paying for audits, software, and security tools. Indirect costs can include staff time for policy updates and training. However, the return is a stronger reputation and the ability to close higher-value deals, making the investment worthwhile.

What ongoing work is needed after achieving SOC 2 certification?

SOC 2 requires ongoing monitoring, regular employee training, and annual audits to keep your badge. Shopify stores must keep security policies current, respond to bugs or breaches quickly, and make sure all staff know what’s expected to keep data secure.

How does SOC 2 compliance protect customer trust and reduce business risk?

By following SOC 2, you show customers their information is handled carefully, which builds long-term loyalty. Compliance also lowers legal and financial risk—if something goes wrong, having policies in place can reduce penalties or help resolve issues faster.

What are some best practices for Shopify stores during SOC 2 implementation?

Use automated tools to track access logs, enforce password protocols, and quickly spot irregular activity. Document everything clearly and involve your team in regular security training. Make SOC 2 part of your culture, not just a checklist item.

Can a small Shopify store achieve SOC 2 compliance, or is it only for bigger operations?

Small and growing stores can absolutely earn SOC 2 compliance. Start by focusing on the basics like access management and clear data policies. Even if you don’t need full certification yet, working toward these standards prepares your brand for bigger opportunities as you scale.