With security breaches becoming more frequent and costly, a provider's security practices are part of the decision to work with them. In an era where 60% of small businesses shut down within six months of a cyberattack, the stakes couldn't be higher. The last thing any business can afford is to partner with a provider that doesn't prioritize data security.
When a company relies on sensitive customer information, especially financial data, choosing a provider with weak security is a serious risk.
At Kintsugi, we treat data protection as the foundation of trust between you and your customers, not as a checkbox. That's why achieving SOC 2 Type 2 compliance matters to us and should matter to you. We're not only telling you your data is safe. We have an independent audit that tests it.
What is SOC 2 Compliance?
SOC 2 compliance is a security checkup for service providers. It was developed by the American Institute of CPAs to ensure that companies, especially SaaS providers like Kintsugi, are properly protecting customer data.
SOC 2 isn't a one-and-done certification. It means continuously proving that you have strong systems in place to protect your clients' sensitive information.
If you handle customer data, and most companies do these days, SOC 2 compliance is a badge of trust. It shows your clients that you're serious about securing their information, which is exactly what Kintsugi has committed to.
For more insights into sales tax compliance and security, you can explore our Sales Tax Automation for Every Company Globally.
Why is SOC 2 Compliance Important?
A data breach is expensive as well as embarrassing. According to the IBM report, the global average cost of a data breach in 2024 increased by 10% and reached $4.88 million. SOC 2 compliance ensures that companies like Kintsugi have the right measures in place to prevent breaches from happening in the first place.
For companies handling critical data like sales tax information, a SOC 2-compliant provider isn't just nice to have. It's a must, and it lets you keep your focus on growth instead of worrying about data risks.
Interested in learning more about sales tax and compliance? Check out our guides, such as Sales Tax Assessment: Stay Ahead of Compliance Issues and Avoid Penalties or Sales Tax States: Your Guide to Going Tax-Free.
Who Can Perform a SOC Audit?
A SOC audit has to be done by a licensed CPA firm. These independent auditors take a deep dive into your systems and check whether you're following the necessary security protocols. They don't only look at your security measures. They test them over time to ensure they work as intended.
This independent verification tells you that your service provider, like Kintsugi, is following the rules on data protection.
Who Needs a SOC 2 Report?
If your business handles customer data, you need a SOC 2 report. This applies to industries like SaaS, ecommerce, and finance, and to any company responsible for managing sensitive information. A SOC 2 report shows your customers that you take their data seriously.
A 2022 survey revealed that 75% of organizations listed data breaches as one of their top security concerns[3].
If that's the case for your business, partnering with a provider that isn't SOC 2 compliant puts your company at unnecessary risk.
You might also find it helpful to explore state-specific tax compliance guides, such as Kansas City Sales Tax 2025 and Denver Sales Tax 2025.
SOC 2 Certification
SOC 2 certification isn't something you add to your website after one quick audit. It's earned through a rigorous, third-party audit process focusing on five key areas: security, availability, processing integrity, confidentiality, and privacy.
There are two types: Type 1, which looks at the design of your systems, and Type 2, which tests how well those systems work over time.
At Kintsugi, we've achieved SOC 2 Type 2 compliance, meaning our security measures have been proven to work effectively over time and not only on paper. That level of assurance matters for businesses that depend on sensitive data, like tax automation.
Why SOC 2 Type 2 Matters for Your Business
Data protection is at the top of your priority list, and if your provider hasn't earned SOC 2 Type 2 compliance, you're leaving the door open to trouble.
Because of the cyberattacks reported in recent years, 66% of tech leaders and 48% of business leaders consider cyber risk their top risk to mitigate in 2024. And 77% expect to increase their cyber budget, per PWC.
The financial and reputational cost of a data breach isn't something any business wants to deal with.
For Kintsugi, SOC 2 Type 2 compliance is a commitment to protecting your business's most sensitive data. It means we've passed demanding security tests and continuously monitor and update our systems to keep your data safe.
Learn more about how we protect your business in our About Us section.
Your Data, Our Commitment
At Kintsugi, SOC 2 Type 2 compliance is more than a certification. It's a promise. We aim to go beyond the minimum security requirements. The threat landscape is always changing, and we're constantly upgrading our defenses to stay ahead of new risks.
"SOC 2 Type 2 compliance isn't a one-time achievement—it's an ongoing commitment to protecting your data," says Michael Eastman, Chief Security Officer at Kintsugi.
Why Kintsugi is the Right Partner for Your Business
If your current provider isn't SOC 2 compliant, you're taking a risk with your business. Security should never be an afterthought. It's not a bonus feature, it's a necessity. At Kintsugi, we take your security seriously, and our SOC 2 Type 2 compliance backs that up.
It's worth asking whether your provider is as committed to your data security as you are.
Explore What Items Are Exempt from Sales Tax in California or Massachusetts Clothing Tax Explained to learn more about how we help businesses navigate tax laws safely.
Continuous Improvement and Looking Forward
SOC 2 Type 2 compliance isn't the finish line for us. It's the beginning. As cyber threats evolve, so do our security measures, and we're committed to continuously improving our systems to keep your data protected.
Our SOC 2 Type 2 certification is one of the reasons you can trust Kintsugi to protect your data and help your business grow securely.
