SOC 2 Costs 2024: Plan a comprehensive compliance budget

Why SOC 2 is important

The security of data and systems is essential for companies today, especially for B2B SaaS providers that work with sensitive customer data. The SOC 2-Norm is an internationally recognised standard that helps companies to structure their security practices and build trust with customers and partners.

The cost issue with SOC 2

But how much does it actually cost to achieve SOC 2 compliance? The answer depends on various factors, such as the size of your organisation, the scope of the security criteria selected and the complexity of your systems. The cost should not just be seen as a burden - it is an investment in the future of your organisation.

What to expect in this blog

In this blog, we take a detailed look at the various cost points that can arise when implementing the SOC 2 standard. We will also show you how to plan this efficiently and avoid potential stumbling blocks. Because one thing is clear: implementing SOC 2 is not just a question of compliance, but a crucial step in ensuring your long-term competitiveness.

 

Important cost factors for SOC 2 compliance

The costs of implementing the SOC 2-Norm vary greatly and depend on a number of factors. To get a better idea of the potential expenses, it is important to understand the key influencing factors.

Direct costs

An external auditor is required to verify compliance with SOC 2 standards. The costs vary depending on the type of audit:

• SOC 2 Type 1: One-time testing of the implementation of security controls.
• SOC 2 Type 2: Detailed audit of the effectiveness of these controls over a specified period of time.

Fees typically range from $15,000 to $50,000, depending on the complexity of the audit.

Security tools and software:

Not only can you save money with a software tool, but you can also automate processes. This allows you to concentrate more on your business processes. With fuentis Suite 4, you can get started for free. You can find transparent Prices to suit everyone on our website.

Indirect costs

Time and internal resources:

Preparing for SOC 2 compliance requires significant internal resources. These include:

• Time to train employees.
• Expenses for documenting processes and security measures.
• Creation and maintenance of reports.

Employee training:

Training is essential to ensure that all team members understand the requirements of the SOC 2-Norm . The costs depend on whether internal or external training is carried out.

Additional factors

Company size:

Larger organisations with more extensive IT infrastructures and teams can expect higher costs as more systems and processes need to be audited.

Complexity of the organisation:

Organisations with complex IT systems and multiple locations will need to invest more to implement and review SOC 2 controls.

Trust service criteria:

Costs increase with the number of Trust Service criteria selected (e.g. security, availability, confidentiality) as each area involves additional requirements and checks.

Conclusion on the costs

Implementing the SOC 2 standard requires careful planning and investment, depending on the size of the organisation, the criteria selected and the complexity of the systems. While direct costs such as auditor fees and security tools are often the focus, indirect costs such as internal resources and employee training should not be underestimated.

Ultimately, however, the cost of SOC 2 compliance is not just an expense, but an investment in the future: it strengthens security practices, increases customer confidence and ensures the long-term competitiveness of your organisation. With the right preparation, companies can achieve compliance efficiently and cost-effectively.

 

The cost of non-compliance

While there are clear financial costs associated with implementing the SOC 2 standard, organisations should also consider the potential costs of non-compliance. These ‘hidden costs’ are often significantly higher than the investment in timely certification.

Regulatory penalties and sanctions

In many industries and regions, compliance with security standards such as SOC 2 is not a voluntary choice, but a legal or contractual obligation. Companies that are not compliant risk:

• High fines: regulatory authorities impose substantial fines for non-compliance. These can increase with the duration of non-compliance.
• Legal disputes: Violations of security requirements can lead to lawsuits from customers or partners.

Reputational damage

One of the biggest risks for companies is losing the trust of their customers and partners:

• Loss of customers: at a time when data protection and security are of key importance to customers, a lack of compliance often leads to customer churn.
• Negative publicity: Security incidents or non-compliance with standards can lead to significant reputational damage, with long-term repercussions for the brand.

Lost business opportunities

SOC 2 is a decisive criterion for many customers and partners:

• Companies without a SOC 2 report often lose contracts as potential partners are unwilling to work with an insecure organisation.
• Especially in the B2B SaaS sector, SOC 2 is a strong competitive advantage that companies without compliance miss out on.

Cost of security incidents

Non-compliance often goes hand in hand with poorer security practices, which increases the risk of data breaches and cyber-attacks. The resulting costs include:

• Restoration and repair of systems.
• Compensation of affected customers.
• Investigation and legal costs.

Conclusion on the costs of non-compliance

The costs of non-compliance go far beyond financial penalties and affect both the competitiveness and long-term stability of a company. Therefore, compliance with the SOC 2 standard is not only a matter of security, but also a strategic decision to ensure long-term success.

SOC 2 Type 1 vs. SOC 2 Type 2: Which option fits?

A crucial aspect of SOC 2 compliance planning is the differences between the two main types of SOC 2 attestation: Type 1 and Type 2. Both have different focuses, objectives and cost structures. The choice depends on the specific requirements of your organisation and your customers.

SOC 2 Type 1

• Definition: Type 1 assesses the adequacy and existence of your security controls at a specific point in time.
• Target group: Particularly suitable for organisations that are just starting with SOC 2 or want to provide their customers with an initial attestation.
• Cost: Lower cost compared to Type 2 as it is a one-off assessment.
• Timeframe: Shorter as the auditor only audits one specific point in time.

SOC 2 Type 2

• Definition: Type 2 assesses not only the existence but also the effectiveness of controls over a specific period of time (usually 6-12 months).
• Target group: Ideal for companies that want to convince their customers of the long-term effectiveness of their security measures.
• Cost: Higher than Type 1 as a more comprehensive audit is required over a longer period of time.
• Timeframe: Longer as both implementation and observation of controls are audited.

Cost differences between type 1 and type 2

• Auditor fees: Type 1 typically costs between $15,000 and $30,000, while Type 2 can cost up to $50,000 or more, depending on the scope and complexity.
• Resources: Type 2 requires more internal resources to document and monitor controls over the audit period.
• Sustainable benefits: Type 2 offers greater long-term benefits as many customers and partners favour the effectiveness of controls.

Which option suits your organisation?

The choice between Type 1 and Type 2 depends on your current requirements:

• Start with Type 1 if you need certification quickly or are introducing SOC 2 for the first time.
• Choose Type 2 if you already have controls in place and want to build long-term trust with your customers.

 

Tips for reducing costs when implementing SOC 2

Implementing the SOC 2 standard can involve considerable costs. However, with a strategic approach and targeted measures, costs can be efficiently minimised without compromising the quality of compliance. Here are some practical tips:

1. use a readiness assessment

A readiness assessment helps to identify weaknesses in your existing security measures at an early stage. This allows you to:

• Optimise your processes before the actual audit.
• Avoid unexpected additional costs during the audit.
• Organise the audit more efficiently.

2. rely on automated compliance tools

Automation tools such as fuentis Suite 4 can significantly simplify the implementation and monitoring of security measures. They not only save time, but also reduce the error rate. Examples of functions of such tools:

• Real-time monitoring of security controls.
• Automatic reporting and documentation.
• Support for the fulfilment of specific Trust Service criteria.

3. choose the Trust Service criteria carefully

Not all Trust Service criteria are relevant for every company. Focus on the criteria that are decisive for your industry and your customers, such as:

• Security.
• Availability.
• Confidentiality.

This reduces the scope and therefore the cost of the audit.

4. work with an experienced auditor

Choosing the right auditor can make a big difference:

• An experienced auditor can give you specific recommendations on how to fulfil the requirements efficiently.
• Clear communication and a structured approach will help avoid unnecessary delays and additional costs.

5 Train your team internally

External training can be expensive. Internal training allows you to:

• Prepare employees specifically for SOC 2 compliance.
• Build long-term knowledge within the company.
• Save on training costs.

6. plan for the long term

SOC 2 is not a one-off event, but a continuous process. Invest in scalable solutions that not only help you with the initial audit, but also with future audits.

Sample calculation: Estimation of SOC 2 compliance costs

To get an idea of how much the implementation of the SOC 2 standard could cost, we have created a sample cost breakdown. We have taken into account both direct and indirect costs that could be incurred by a typical medium-sized company.

Direct costs

Auditor fees:

• SOC 2 Type 1: USD 15,000-30,000
• SOC 2 Type 2: 30,000-50,000 USD

Security tools and software:

Costs for monitoring and automation tools: 0 USD - 25,000 USD annually. The fuentis Suite 4 can already be used free of charge.

Indirect costs

Employee training:

Cost of internal or external training: USD 5,000-10,000.

Internal resources:

Time spent by your teams on documentation, monitoring and implementation: USD 10,000-20,000.

Additional factors

Readiness assessment (optional):

Cost: USD 5,000-15,000.

Conclusion on the sample calculation of SOC 2 compliance costs

SOC 2 compliance is an important investment for companies that want to improve their security standards and strengthen the trust of customers and partners. In our example, the total cost of implementing the SOC 2 standard is around USD 84,000.

This sum includes direct costs such as auditor fees (USD 40,000) and security tools (USD 15,000) as well as indirect costs such as training, internal resources and a readiness assessment. While the cost may seem daunting at first, companies should view it as a long-term investment.

The benefits far outweigh the costs: SOC 2 compliance strengthens your security posture, reduces the risk of cyberattacks and opens doors to new business opportunities. It also enables you to fulfil legal and contractual requirements, avoiding potential penalties and reputational damage.

With the right planning and targeted deployment of resources, SOC 2 compliance can not only be affordable, but also a strategic competitive advantage for your organisation.

 

Conclusion

SOC 2 compliance is an essential step for companies that want to optimise their security measures and strengthen the trust of their customers and partners. It is far more than just a legal or contractual obligation - it is a strategic investment in the future.

Summary of the most important points:

• Cost structure: Implementing the SOC 2 standard requires both direct investments (e.g. auditor fees, security tools) and indirect expenses (e.g. internal resources and training). In our example, the total costs amount to around USD 84,000. 84.000 USD.
• Individual requirements: The choice between SOC 2 Type 1 and Type 2 and the scope of the Trust Service criteria are critical to the total cost and time required.
• Avoid non-compliance: The cost of non-compliance - including fines, loss of reputation and missed business opportunities - can be significantly higher than the investment in compliance.
• Long-term benefits: SOC 2 not only strengthens security, but also your organisation's market position and competitiveness.

SOC 2 compliance as a competitive advantage

SOC 2 compliance shows your customers and partners that you are seriously investing in the security of their data. With the increasing spread of cloud solutions and the growing importance of data protection, SOC 2 is increasingly becoming an indispensable standard. Companies that take this step early will benefit from greater trust and expanded business opportunities in the long term.