𝐒𝐎𝐂 1 𝐯𝐬. 𝐒𝐎𝐂 2 𝐯𝐬. 𝐒𝐎𝐂 3

SOC stands for Service Organization Control, and the nut of what it’s all about is summarized right there: You’re a service organization (in accountant-speak), and you need to prove that you have certain controls in place for said accountants to deem you SOC-compliant.

SOC compliance is important because most enterprises can't or won't adopt your product without it. Without SOC compliance, you can’t land the enterprise deals that make your startup sustainable.

In this article, we’re going to break down the meaning of SOC 1, SOC 2, and SOC 3, as well as the differences between all three. By the end, you’ll know which is most relevant and which is necessary, and you’ll understand how to embark on the path to compliance.

SOC 1 vs. SOC 2. vs. SOC 3: An Overview‍

TL;DR: SOC compliance demonstrates that your customers can rely on the services you provide. An accountant audits your company and certifies you with a SOC report that you supply to your customers. This report proves your trustworthiness.

However, understanding SOC compliance in greater detail is important for knowing when to get SOC compliance and which type of SOC report to get. So, let’s break it down further.

The Major differences between Soc 1 vs. SOC 2. vs. SOC 3

There are three primary types of SOC reports—the first two are the most used, and the second is of most concern to technology companies.

SOC 1 and SOC 2 are the most common SOC reports, so understanding the difference between them is essential. The difference between SOC 1 and SOC 2 is that SOC 1 focuses on financial reporting, whereas SOC 2 focuses on compliance and operations.

SOC 3 reports are less common. SOC 3 is a variation of SOC 2 and contains the same information as SOC 2, but it’s presented for a general audience rather than an informed one. If a SOC 2 report is for auditors and stakeholders inside the company you’re selling to, SOC 3 is for that company’s customers.

There are a couple of other SOC reports that are rarer and outside the scope of this article:

• SOC for Cybersecurity reports on a service organization’s cybersecurity risk management effectiveness.

• SOC for Supply Chain reports on the effectiveness of a service organization’s supply chain risk management.

Take a look at SOC 1, SOC 2, and SOC 3 from a higher level. Save these infographic notes to refer to when your memory of this article gets a little hazy.