Using Compliance Audits As a Sales Tool

The software-as-a-service (SaaS) market will show annual growth of 18 percent, and have a valuation of $908 billion-plus by 2030. Increasing reliance on software and other digital services in the cloud is the engine of its growth.

Mike DeKock, writing for Help Net Security, says that compliance also enables SaaS growth. Businesses normally grumble about compliance, acknowledging its necessity, but not viewing it as something they choose to publicize.

DeCock makes the case that being compliant is a valuable sales tool for business-to-business companies. Given the increasing tempo of cyberattacks, security is critical for those companies. They take notice when it is demonstrated as a core feature.

System and Organization Controls 2 (SOC 2) reports which audit the data security measures of SaaS companies can be provided by properly trained certified public accountants. Their reports illustrate a company’s commitment to safety and best practices.

Business managers often complain about being slowed down by an audit. When CPA firms use compliance software to connect to a company’s operations, audits speed up.

The budget for SOC 2 reports could come from many departments, IT and Legal among them. DeCock argues that it should be considered a sales expense because it showcases how a business secures data, which is a key sales tool.

SOC 2 reports apply to all industries, but the substance of the reports differs from one industry to another because their duty to their customers differs. A fintech company’s customers might focus on platform downtime and processing integrity. Health technology companies may require background checks on all hires, and they must be hyper-aware of HIPAA requirements.

Auditors become familiar with a company because they have to know its goals and objectives, and how it plans to actualize them. If companies work with an auditor familiar with their industry it is an opportunity to benchmark against similar companies and learn best practices in the industry.