Tuesday, May 24, 2022

Why SaaS Start-Ups Must Prioritize Their SOC 2 Compliance

With SaaS enjoying a high demand today, many people are venturing into establishing SaaS start-ups. As software developers, most of them typically..

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Tried-and-True Strategies for SaaS Businesses - 11

With SaaS enjoying a high demand today, many people are venturing into establishing SaaS start-ups. As software developers, most of them typically focus on product design, functionality, marketing, customer satisfaction, and revenue generation. Unfortunately, they forget cybersecurity, which is one of the critical functions most customers look for in any software today.

Most enterprise customers today require all of their vendors of SaaS platforms to have a SOC 2 audit and submit a report to them. A licensed CPA agency must do the SOC 2 audits. When there is a SOC 2 audit, the auditor checks the company’s internal controls regarding availability, privacy, confidentiality, processing integrity, and security of the SaaS solution the vendor offers.

Given the factors above, it is more essential for a SaaS start-up to be reactive in preparing for the SOC 2 audit and find a CPA agency early. Working with a CPA firm early on helps the company to plan and complete the audit preparation within a specific time and budget. A SOC 2 audit is a continuous process. It will make your audit team more efficient if your platform features SOC 2 automation, as many of the tasks are routine and repetitive.

Benefits of SOC 2 audits for SaaS start-ups

SaaS start-ups now realize the several benefits SOC 2 audits can provide. Here are a few of them.

Show their enterprise customers that their primary focus is cybersecurity 

For most enterprises, the most critical issue today is cybersecurity. Due to this, they require software vendors to follow strict requirements regarding cybersecurity and expect them to have an annual SOC 2 attestation audit. Organizations today likewise require their vendors to submit a SOC 2 report.

Prevent serious gaps in cybersecurity 

For a SaaS company to get a clean report, it should have excellent cybersecurity controls in place. This may include multi-factor authentication for all users that deploy apps for the store, process, or transmit sensitive customer information, requiring that data, whether in transit or storage, should be encrypted. As these are basic requirements from enterprise customers, SaaS start-ups become aware that they have to implement the SOC 2 controls from the beginning to prevent restructuring their software’s architecture.

Inspire a culture of cybersecurity from the beginning

A company needs to instill a culture of cybersecurity from the beginning to ensure the success of its implementation. With a SOC 2 audit, a company has to consider cybersecurity with every change and decision that the company makes. Implementing it from the start allows the employees to keep it in mind.

Minimize the time dealing with auditors and decrease business disruption

It takes a considerable amount of time to complete a SOC 2 audit, which ties down several employees and prevents them from performing their original tasks. With proper planning and coordination, your SOC 2 audit team can dedicate less time and effort to prepare and complete the audit, which means there will be less disruption in your day-to-day activities.

A SaaS start-up needs to participate in a SOC 2 audit because it is already mandatory for their business. Early and proper preparation and coordination will minimize the amount of time an audit team will spend on the process and work more diligently to ensure that everything is according to the requirements.


Interesting Related Article: “A Brief Guide To Cost Management For Saas“

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By: Veronica Cruz
Title: Why SaaS Start-Ups Must Prioritize Their SOC 2 Compliance
Sourced From: marketbusinessnews.com/why-saas-start-ups-must-prioritize-their-soc-2-compliance/288230/
Published Date: Wed, 19 Jan 2022 21:39:33 +0000

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