System and Organization Controls 2 (SOC 2) is a competitive differentiator that proves a business can protect sensitive customer data. It is also often a deciding factor in winning enterprise deals, especially in industries such as SaaS, fintech, and healthcare, where data security is expected.
In this blog, we’ll break down the SOC 2 process, explain the difference between Type 1 and Type 2, and show how managed service providers (MSPs) can add value at every stage of the journey. Whether you’re fielding your first client request or building a support offering around compliance, this guide will help you get started.
What is SOC 2 compliance?
SOC 2 is a voluntary compliance standard developed by the American Institute of Certified Public Accountants (AICPA). It evaluates how well a company safeguards customer data using five Trust Services Criteria:
- Security: Protection against unauthorized access
- Availability: System uptime and performance
- Processing integrity: Accuracy and timeliness of system processing
- Confidentiality: Data access controls
- Privacy: Collection, use, and disposal of personal information
SOC 2 is most relevant for service providers that store or process client data in the cloud. That includes SaaS companies, managed hosting companies, and healthcare or fintech service providers.
Unlike SOC 1, which focuses on financial reporting controls, SOC 2 centers on IT systems and data protection. It’s often compared with ISO 27001, but SOC 2 is more tailored to North American regulatory expectations and service delivery environments.
SOC 2 Type 1 vs. Type 2: What MSPs need to know
SOC 2 reports come in two forms, Type 1 and Type 2, and clients may not always understand the difference.
- Type 1 assesses whether the right controls are in place at a specific point in time
- Type 2 evaluates whether those controls operated effectively over a period (usually 3-12 months)
For startups or early-stage small and midsized businesses (SMBs), a Type 1 report may be sufficient to satisfy a vendor due diligence questionnaire. But as they scale or seek enterprise clients, Type 2 becomes the gold standard.
From an MSP’s perspective, Type 2 compliance requires greater planning, long-term evidence collection, and ongoing monitoring, making your support even more valuable. Understanding which report your client needs and what level of effort is involved will help you set realistic expectations and timelines for MSP engagements that support SOC 2 certification.
The SOC 2 compliance process: Step-by-step overview
Achieving SOC 2 compliance is a structured process that unfolds across several phases. Whether your client is pursuing Type 1 or Type 2, the path to readiness typically includes these core steps:
1. Define the scope
Clients must decide which systems, processes, and services will be included in the audit. This often means identifying in-scope cloud infrastructure, data flows, and departments that interact with customer data. MSPs can assist by mapping system boundaries and clarifying which technical controls fall under their management.
2. Conduct a readiness assessment
This pre-audit phase evaluates the current state of controls against the Trust Services Criteria. It identifies gaps, such as missing logs, inconsistent access controls, or undocumented policies, that need to be addressed before the formal audit. MSPs often contribute technical input here and help determine the effort required for remediation.
3. Remediate control gaps
Once issues are identified, the client (often with help from their MSP and possibly a vCISO) must implement missing controls. Examples include enabling multi-factor authentication (MFA), configuring logging and alerting, or updating backup procedures. MSPs frequently lead this phase by implementing tools and writing documentation to support controls.
4. Collect evidence
For Type 1, evidence needs to show that controls were in place at a point in time. For Type 2, evidence must span the audit period, commonly 3-12 months. This includes access logs, incident response records, and change management documentation. MSPs play a key role by generating system reports and screenshots, ensuring data is complete and audit ready.
5. Engage an auditor
Once controls are in place and evidence is collected, the client engages a licensed CPA firm to conduct the audit. The auditor will assess whether the controls meet the Trust Services Criteria and issue a SOC 2 report based on their findings.
How MSPs can support clients pursuing SOC 2
Even though SOC 2 compliance falls on the client organization, MSPs often control or maintain many of the technical systems under review. That makes your role essential; not just for implementation, but for helping clients avoid delays, audit failures, or rework.
Here’s how MSPs typically support SOC 2 efforts:
Implementing security controls
MSPs are responsible for configuring and maintaining many of the core systems that auditors review. This includes:
- Access controls: Enforcing least privilege, MFA, and role-based access
- Logging and monitoring: Ensuring logs are retained, auditable, and regularly reviewed
- Patch management: Keeping systems up to date and documenting patch cycles
- Network segmentation and firewall rules: Preventing lateral movement and unauthorized access
Documenting procedures
Clients often struggle to produce written policies for processes MSPs already manage. You can help by creating or contributing to:
Auditors want proof that procedures exist, are followed, and are documented.
Automating evidence collection
Most MSP toolsets already generate the reports auditors want to see. Remote monitoring and management (RMM) tools, backup dashboards, security information and event management (SIEM) solutions, and endpoint protection tools provide:
- User access logs
- Patch status reports
- Alert history and remediation logs
- Backup verification and recovery testing records
Helping clients extract and organize this data reduces friction and saves time during the audit window.
Supporting ongoing monitoring
For Type 2 audits, controls must operate consistently over time. MSPs play a critical role in sustaining uptime, managing alerts, and documenting incidents, especially in high-change environments such as cloud-native service providers.
MSPs that go beyond reactive support and align with compliance objectives position themselves as proactive, audit-ready partners, boosting client loyalty and unlocking new service opportunities.
Common SOC 2 audit challenges and how MSPs help overcome them
Even well-prepared organizations run into roadblocks during SOC 2 audits. Most issues stem from gaps in documentation, inconsistent technical controls, or unclear ownership. This is where an experienced MSP can make a measurable difference.
Here are some of the most common challenges and how MSPs help clients address them:
Incomplete asset inventories
Auditors require visibility into all systems that process or store customer data. If the client lacks a clear asset inventory, it’s nearly impossible to validate controls.
How MSPs help: Use endpoint management software to generate detailed inventories, categorize systems by function or data classification, and keep records updated throughout the audit window.
Weak or inconsistent MFA and password policies
If some systems enforce MFA while others don’t, or if password policies are outdated, it introduces risk and audit friction.
How MSPs help:
Standardize access policies across cloud and on-prem environments. Enforce MFA for all administrative and user accounts, and document policy enforcement using security reports from your IAM or RMM tool.
Unlogged admin access or privilege creep
Excessive permissions or unmonitored admin activity is a red flag in SOC 2 audits.
How MSPs help: Implement role-based access controls (RBAC), routinely audit account privileges, and centralize admin activity logs using SIEM or syslog tools. Provide access reports that prove regular reviews take place.
Inconsistent change management documentation
SOC 2 auditors want proof that configuration changes follow a repeatable, documented process. Informal workflows, or no documentation at all, can jeopardize audit readiness.
How MSPs help:
Deploy ticketing systems or change request workflows, and help clients document who authorized changes, when they were made, and how they were validated post-implementation.
Tools and services MSPs can offer to ease SOC 2 readiness
SOC 2 compliance depends on secure, monitored, and well-documented systems; areas where MSPs already provide essential value. By leveraging the right tools and services, you can help clients meet audit requirements without introducing major workflow disruptions.
Here are the most impactful ways MSPs support SOC 2 readiness:
Patch management via RMM software
RMM tools offer automated patch management to give you visibility into system health and the ability to enforce updates at scale. These capabilities ensure endpoints stay secure and compliant with change control policies.
SOC 2 impact: Demonstrates control over asset inventories, system uptime, vulnerability management, and change tracking. MSPs can generate reports showing patch compliance and system status, which are key artifacts in Type 1 and Type 2 audits.
Endpoint detection and response (EDR) or managed detection and response (MDR)
EDR tools offer real-time threat detection, behavioral analysis, and incident logging. Many MSPs also offer managed detection and response (MDR) services, which combine EDR tooling with expert oversight and 24/7 threat hunting.
SOC 2 impact: Both EDR and MDR help meet the security and incident response criteria by demonstrating that active monitoring and rapid containment processes are in place. Reports from these tools provide critical evidence for auditors.
Business continuity and disaster recovery
Robust business continuity and disaster recovery (BCDR) services ensure that client data can be restored properly in case of loss, corruption, or ransomware.
SOC 2 impact: Backup success logs, recovery test results, and documented RTOs/RPOs directly support the availability and confidentiality criteria.
SIEM
Centralized logging and alerting tools help collect, store, and analyze security-relevant events across the environment.
SOC 2 impact: SIEM provides evidence of security control enforcement, policy violations, and monitoring consistency, which are essential to prove ongoing operational effectiveness during Type 2 audits.
The result: When MSPs align their toolset with SOC 2 audit criteria, they streamline compliance efforts, uncover new service opportunities, and build long-term trust with security-conscious clients.
Building a SOC 2 support service offering
SOC 2 requests may start as one-off client asks, but MSPs that formalize their support can turn those requests into recurring, value-added services. By packaging your compliance-aligned capabilities, you position your business as more than just technical support; you become a strategic partner for risk and audit readiness.
Start with what you already manage
If you’re already providing patching, backups, MDR, SIEM, or network monitoring, map those services to the relevant Trust Services Criteria. Create documentation that outlines how each offering supports SOC 2 compliance. This gives clients and prospects a clear reason to trust you as part of their audit strategy.
Offer SOC 2 readiness packages
Bundle key services such as RMM visibility, vulnerability scanning, incident response support, and access control reporting into a defined readiness package. Include options for evidence collection assistance and support during auditor interviews.
Partner with vCISOs or GRC consultants
MSPs don’t need to be SOC 2 experts in-house. Build referral or subcontracting relationships with virtual CISOs or governance, risk, and compliance (GRC) specialists who can provide policy development and control gap assessments. You handle the technology; they handle the audit language.
Focus on industries where compliance drives buying decisions
Verticals such as SaaS, healthcare, fintech, and legal services often have the most pressing SOC 2 needs. If you serve these clients, or want to, highlight your compliance readiness services in marketing and sales conversations.
The result: Turning SOC 2 expertise into a packaged service adds revenue, improves client retention, and helps differentiate your MSP in a crowded market.
Final checklist: What MSPs need when a client wants SOC 2
When a client reaches out asking for help with SOC 2, the path forward can seem unclear. Use this checklist to guide initial conversations, set expectations, and clarify how your team will support the process.
Initial questions to ask the client:
- Are you pursuing SOC 2 Type 1 or Type 2?
- What systems or environments will be in scope?
- Do you already have a readiness assessment or GRC consultant engaged?
- What’s your target audit timeline?
- Which internal team members are leading the effort?
Technical controls MSPs often support:
- MFA enforcement across users and admins
- Endpoint protection and monitoring (MDR/EDR)
- Centralized logging and retention (SIEM)
- Backup schedules and recovery tests (BCDR)
- Patch compliance tracking
- Role-based access and user provisioning
- Secure remote access (secure access service edge: SASE)
Deliverables MSPs may provide:
- System and asset inventories
- Patch and backup reports
- Access control and activity logs
- Change management documentation
- Incident response records
- Evidence screenshots or exported logs
Turn SOC 2 requests into long-term value
SOC 2 compliance is no longer limited to enterprises. SMBs are under growing pressure to prove they can protect customer data. MSPs that understand the audit process and align their services with SOC 2 controls can deepen client trust, unlock new revenue, and stand out in security-conscious industries.
ConnectWise helps make it happen. With integrated solutions for RMM, EDR, MDR, BCDR, SIEM, SASE, and automated documentation, you can deliver audit-ready support, strengthen data protection, and position your MSP as a trusted compliance partner.
