SOC 2 compliance is no longer optional—Here’s what it means for the future of B2B

Trust is no longer just a competitive advantage in B2B SaaS and service-based industries—it’s a business necessity. Organizations rely on vendors to handle sensitive data, financial information, and critical business operations, expecting not just efficiency but security and reliability. As cyber threats increase and compliance expectations tighten, businesses that don’t proactively establish and maintain trust risk losing opportunities before they even begin. SOC 2 compliance has emerged as a key trust signal, shifting from a differentiator to a fundamental requirement for doing business. It’s not just about meeting security standards—it’s about enabling growth, streamlining partnerships, and ensuring long-term success.

Let’s start with the basics: What exactly is SOC 2? 

SOC 2 (Service Organization Control 2) is an independent auditing standard developed by the American Institute of CPAs (AICPA). In plain English, it’s a voluntary framework that assesses how organizations manage customer data in key areas like security and privacy​

If a company is SOC 2 certified, it means an accredited third-party auditor has examined its controls and procedures and attests that the company meets a high standard for safeguarding customer information.

Specifically, SOC 2 looks at five Trust Service Principles critical to data security and operations. These principles are essentially the pillars of good governance for tech platforms:

In short, SOC 2 is a comprehensive health check on a company’s controls across those areas. It provides customers with peace of mind that we have “good governance in security, availability, processing integrity, confidentiality, and privacy,” as I like to put it. 

It’s a rigorous process (audits can take months), but the result is an official report that we can show our customers: an independent validation that we walk the talk on protecting their data.

Not too long ago, having a SOC 2 certification could really set a software provider apart. It was a competitive advantage – a gold star on your security record that not all vendors had. It still is a competitive edge, but increasingly, SOC 2 compliance has shifted from a differentiator to baseline expectation in B2B markets. In fact, in recent years SOC 2 has grown in popularity and become table stakes for SaaS companies. 

Why the change? Because customers and partners are demanding it. 

With cyberattacks on the rise and high-profile data breaches making headlines, companies large and small have become far more stringent about the security of their supply chain and vendors. A SOC 2 certification has become the price of entry for doing business with many mid-market and enterprise clients. Security questionnaires and due diligence checklists usually ask, “Can you provide a SOC 2 report?” If the answer is no, that conversation might end right there.

Don’t just take my word for it. A 2023 AICPA survey found a nearly 50% increase in demand for SOC 2 engagements as companies recognize the importance of IT security​. 

In other words, more businesses than ever are investing in SOC 2 because their customers expect it. It’s not just about avoiding risk; it’s about enabling growth and business opportunities. 

When a prospect knows you’ve passed a SOC 2 audit, the number of follow-up security questions drops dramatically – and that can fast-track the partnership. At the same time, not having SOC 2 is quickly becoming a liability. When all your serious competitors can show a SOC 2 report, you don’t want to be the only one who can’t. 

Companies that fail to adopt SOC 2 risk being left behind, as enterprise clients increasingly require this compliance from their vendors​. In fact, one study revealed that 29% of organizations had lost a new business deal because they were missing a compliance certification like SOC 2, and 72% went through a compliance audit specifically to win new business​. 

These numbers tell a clear story: if you don’t prioritize security compliance, your customers will move to someone who does.

Ignition’s push for SOC 2 isn’t happening in isolation. Across the tech industry and beyond, forward-thinking companies are doubling down on security compliance to differentiate themselves. We see it with our partners and peers: for example, Xero makes its SOC 2 report available to customers and partners who want assurance about its security, availability, and confidentiality controls​.

Even in completely different sectors, the trend holds; take Slack, a workplace communication platform, which undergoes SOC 2 audits and provides reports covering its security, availability, and confidentiality measures for enterprise clients. ​

Whether you’re a cloud accounting app, a messaging tool, or a fintech service, demonstrating strong security practices is becoming standard operating procedure. It’s a broad movement toward greater transparency and accountability.

The message is clear: trust is now a prerequisite for doing business. Companies that embrace frameworks like SOC 2 signal to the market that they take security seriously and have nothing to hide. On the flip side, companies that drag their feet may find themselves struggling to win deals or enter new markets. 

If your SaaS or service business aspires to work with larger customers, you can bet those customers will ask about your security posture early in the conversation. I truly believe that in the near future, not having SOC 2 (or a similar security certification) will be like not having HTTPS on your website: an automatic red flag.

At Ignition, trust has always been central to our mission. We are, after all, a platform that helps businesses manage their most critical relationships – their clients and their revenue. Ignition has facilitated billions of dollars in client revenue on our platform (over $3 billion across 7,500+ businesses as of the end of 2024)​. 

With this kind of scale comes a huge responsibility to safeguard the data and transactions flowing through our system. We don’t take that lightly. As our CEO Greg Strickland recently said, “we’re building a community rooted in growth, trust, and shared success​.” 

Embarking on SOC 2 certification is a significant undertaking, but at Ignition we see it as an investment in our customers’ trust and in our future. It’s not just about ticking a compliance box or getting a logo to put on our site. It’s about instilling a culture of security and excellence within our team, continually improving our processes, and, ultimately, giving our customers absolute confidence in our platform. 

This is why pursuing SOC 2 verification was a top priority for me upon joining Ignition as CFO. Ignition has now achieved SOC 2 Type 1 certification and are now actively pursuing SOC 2 Type 2 as the next step in our continuous trust journey. We recognize that security and compliance are not one-time achievements but ongoing commitments—ones that evolve alongside our customers' expectations and the broader industry landscape.

We want our customers—accounting firms, agencies, consultancies, and all the service businesses we empower—to know that Ignition has their back when it comes to safeguarding their data. SOC 2 compliance is just one more way we make good on  that commitment.