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SOC 2 Type 1 & Type 2: What SMBs Need to Know

SOC 2 Type 1 & Type 2: What SMBs Need to Know

Full name
11 Jan 2022
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5 min read

If you store, process, or handle customer data, chances are you’ve been asked about your security practices. For SMBs, that pressure often comes from larger customers, partners, or procurement teams that need assurance you can be trusted with sensitive information.

That’s where SOC 2 comes in. Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 evaluates how well your organization manages data according to the Trust Services Criteria:

  • Security
  • Availability
  • Processing Integrity
  • Confidentiality
  • Privacy

Earning a SOC 2 report tells the market: you protect customer data, and you have the processes to prove it.

The two types of SOC 2 reports address different but equally important questions:

  • Type 1: Are the right controls in place today?
  • Type 2: Do those controls work consistently over time?
The Difference Between SOC 2 Type 1 and Type 2

How to Decide Between SOC 2 Type 1 and Type 2

For most SMBs, the choice comes down to speed versus depth.

Choose Type 1 if:

  • You need to show compliance quickly
  • You’re signaling intent to larger customers or partners
  • You’re not sure your processes are fully ready yet
  • You want a readiness step before pursuing Type 2

Choose Type 2 if:

  • You want stronger, long-term credibility
  • You need to prove your controls work consistently over time
  • You’re further along in operational maturity and want deeper assurance

Many SMBs start with Type 1 to meet immediate customer demands. It shows intent and buys time, but it rarely satisfies long-term. As contracts get larger and customers expect more assurance, most organizations progress to Type 2 in the next audit cycle.

Why SOC 2 Is Becoming a Must-Have 

SOC 2 isn’t just a “big company” requirement anymore. It’s becoming a standard ask in contracts, vendor assessments, and security questionnaires — even for smaller businesses.
Getting it right can:

  • Shorten sales cycles with larger customers
  • Reduce back-and-forth on security reviews
  • Strengthen your brand’s credibility

Build a stronger security culture internally

How Deepsight Helps

SOC 2 compliance isn’t just about passing an audit, it’s about building confidence in your operations.

Deepsight helps SMBs:

  • Assess readiness. Spot gaps before the audit
  • Align controls with your workflows. Avoid unnecessary red tape
  • Simplify documentation and evidence. Make audits less disruptive
  • Maintain compliance year-round. So renewal is smooth, not stressful

We meet you where you are whether you need your first SOC 2 Type 1 report or you’re ready to move into a full Type 2. Our goal is to make SOC 2 an advantage you can use to win business, not just a requirement you have to check off.

Ready to get your SOC 2 journey started?
Get in touch to learn about the fastest way to get you audit-ready.

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