What SOC 2 Compliance Means for TaxJar Customers

by Jen Carati February 18, 2020

TaxJar is happy to announce that we are SOC 2 compliant.

Independent CPA firm Schellman & Company, LLC examined TaxJar’s standards for data security and found that TaxJar has the necessary controls and safeguards in place to protect against unauthorized intrusion into our system and unauthorized disclosure of customer data.

These days, many companies require a SOC 2 compliance examination from their vendors. If you’re not totally familiar with the ins and outs of data security, we’ve got you covered. 

“SOC” stands for “System and Organization Controls” as set forth by the American Institute of Certified Public Accountants (AICPA.) That’s a fancy way of saying that an independent entity has set forth meticulous standards to ensure that your data is safe and that those standards have become the accounting industry standard.

Being SOC 2 compliant means that TaxJar’s data security was put through a rigorous examination by an independent CPA firm based on those standards and was found to pass with flying colors. At TaxJar, we have emphasized protecting our customer’s data and privacy from day one. The fact that we can now tell the world we are SOC 2 compliant just means that an independent auditor agrees.

“TaxJar’s successful completion of a SOC 2 examination demonstrates their dedication to security and compliance as well as their customers,” said Danny Manimbo, Schellman’s Senior Manager.

Why did we conduct a SOC 2 Compliance examination?

TaxJar’s Core Value #1 is “We do the right thing for our customers.”

Protecting our customers’ privacy and security falls directly in line with that value. 

Regulatory compliance is not going to go away. As more and more of our lives and businesses are conducted online, it becomes more important than ever to hold ourselves to a superior standard of information security. 

SOC is that globally-accepted standard. We work with a top-notch ecosystem of sales channels, ERPs, developers and others, and we expect our partners to maintain a high standard of data security.  By opening our internal controls and processes up to this examination, we show our partners that same respect and level of trust. From here, we can, along with our partners, meet the growing security demands of our mutual customers. It’s a win/win. 

The Nitty Gritty Details of SOC 2 Compliance

Are you a glutton for data security? Here are more details:

TaxJar was found to be SOC 2, Type 1 compliant. To put it in data security-speak:

Information and systems are protected against unauthorized access, unauthorized disclosure of information, and damage to systems that could compromise the availability, integrity, confidentiality, and privacy of information or systems and affect the entity’s ability to meet its objectives.

The results of our SOC 2 compliance examination are available to customers and partners who need more information. They just have to sign a non-disclosure agreement first. 

TaxJar also commits to inviting an outside CPA firm to examine our data security annually in order to maintain our SOC 2 compliant status. 

Do you have any questions about SOC 2 compliance or your data security? Contact us. We’re an open book, except when it comes to your customer data of course. 

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