The Best Phone Systems for Small Businesses

A missed customer call can become a missed sale, but a complicated phone platform can create work your team does not need. The right business phone system gives employees a dependable way to answer customers, transfer calls and keep business conversations separate from their personal phones. Some services concentrate on calling and texting, while others combine phone service with video meetings, team messaging and customer service tools.

Our picks cover different needs, including Ooma Office for small businesses, Aircall for customer communication and Quo for small teams sharing a business line. Below, you can compare subscription costs, useful features and the trade-offs that matter when choosing a service, including artificial intelligence (AI) tools for handling calls. For help mapping those options to your operation, see our business phone system guide.

A business phone system is a communications platform that businesses of any size use to communicate with others outside and inside their company. Most of today’s business phone systems utilize either Voice-over-Internet-Protocol (VoIP), private branch exchange (PBX) or a combination of both.  While electronic communication, such as email, has become a prevalent form of communication, all businesses still need the tools to speak directly with clients, customers or other team members, and that’s what a business phone system provides. Unlike a home telephone, business phone systems provide companies with added functionality, such as unlimited calling, automated menus, ring groups to call multiple employees simultaneously and call recording. Many business phone systems have morphed into unified communications platforms that also include video conferencing, internal messaging and text messaging.

Cloud phone services can reduce the need to maintain a phone server at your office and give employees access to their business numbers through apps. They also offer call management tools that help smaller teams handle customers professionally. Their value depends on your needs, however: internet quality, subscription terms and the features included in your plan all affect the outcome.

Go beyond making calls

Cloud-based business phone systems do far more than make calls. They also support video conferencing, team messaging, SMS and online faxing. In addition, they offer integrations with popular business software and highly rated CRM platforms to properly manage customer data and communications across an entire business.
Enjoy communications flexibility.

Users can take and receive calls on any internet-connected devices, including computers, tablets, mobile phones and IP phones, with the same functionality as a traditional-looking desk phone. Businesses can send inbound calls to all devices at one time or set up ring groups that dial specific teams or employees with a simultaneous or sequential ring setting to ensure all inbound calls are routed and received correctly.

Get quality assurance

VoIP call quality depends on both the provider and your network. A strong internet connection and suitable configuration help limit delays, dropped audio and interruptions. Ask about the provider’s service-level agreement (SLA), how uptime is measured, exclusions and available credits. A provider’s uptime commitment does not guarantee uninterrupted service through your own internet connection.

Today’s business phone systems offer many valuable features for small businesses, such as auto-attendants, AI tools and video conferencing. Perhaps the greatest benefit of cloud-hosted systems is that they’ve opened the door for small businesses to access a multitude of advanced functions without overspending. Previously, only larger companies could afford feature-rich systems because of the capital required to install the necessary equipment. Below are some of the functions to look for in today’s modern business phone systems.

A phone platform may store recordings, transcripts and customer contact details, so account and data protections should be part of your buying decision. Ask how the provider encrypts traffic and stored information, controls account access and handles retention. Transport Layer Security (TLS) and Secure Real-time Transport Protocol (SRTP) can protect communications in transit, but their presence alone does not establish end-to-end encryption.

Evaluate these protections with the way your team actually works:

• Multifactor authentication and single sign-on options that match your account setup.
• Permissions that limit who can access recordings, transcripts and administration tools.
• Retention and deletion controls, including the provider’s policies for AI processing.
• Audit information, security documentation and a process for reporting incidents.
• Network and device safeguards for employees working away from the office.

Healthcare organizations should confirm whether the specific services they will use support requirements under the Health Insurance Portability and Accountability Act (HIPAA). Where applicable, obtain a BAA covering those services and verify the required configuration. Vendor credentials do not replace your organization’s own obligations for protecting patient information.

The providers on our list offer publicly priced entry plans around $10.50 to $30 per user or line, per month, before usage charges and optional services. More advanced customer experience subscriptions can cost substantially more, and some services require a custom quote. Annual commitments frequently bring a lower monthly equivalent, so compare the same billing period when weighing options.

Headcount and minimum purchases also matter. Aircall’s $30 annual-billing entry rate requires three licenses, which means the service starts at $90 a month before extras. Verizon’s $20 bundled voice line requires qualifying internet service purchased separately. Zoom’s lowest phone subscription uses metered calling, while Quo’s AI answering allowance does not cover unlimited automated calls.

Hidden costs and unexpected charges

While comparing business phone system prices, it’s crucial to understand the full cost picture beyond the advertised monthly rates. Many providers have additional fees that can significantly impact your total expenses.

Common hidden costs in business phone systems include:

• Setup and Installation Fees: Professional VoIP setup usually costs extra, depending on complexity (though many providers waive this with annual contracts.) Traditional phone systems often require much higher installation costs due to physical wiring needs.
• Hardware Costs: While basic VoIP services usually include a softphone app, dedicated IP phones will cost you above and beyond a softphone, usually starting around $50 per device and reaching several hundred dollars. Traditional desk phones and PBX hardware can cost thousands for small businesses.
• Regulatory and Tax Fees: Government-mandated charges are often unavoidable. E911 fees typically range from $0.20 to $2.00 per line, and various state and local taxes apply.
• International Calling Charges: International calling costs generally span from one to three cents per minute for popular destinations, while remote locations may incur charges exceeding $2 per minute.
• Number Porting Fees: Transferring your existing phone numbers to a new provider typically costs $10 to $30 per number, though some providers include this service free.
• Contract and Cancellation Penalties: Some providers charge cancellation fees if you end service early, and auto-renewal clauses can lock you into unwanted contract extensions.

To avoid surprises, always request a detailed cost breakdown from providers and ask specifically about:

• All one-time setup costs.
• Monthly regulatory fees and taxes.
• Costs for essential features you’ll need.
• International calling rates, if applicable.
• Contract terms and cancellation policies.

FYI: Ask for a quote that includes recurring subscriptions, equipment, setup, messaging registration, usage charges and cancellation terms. Porting an existing number and getting approval for business texting are separate processes, so include both in your migration plan.

No matter your unique circumstances, there are a few factors that are always important to keep in mind when shopping for a business phone system. We asked business owners and decision makers who recently went through the buying process to explain how they went about finding the best business phone system for their needs and what they prioritized during their search.

Cost

When it comes to cost, don’t just choose the cheapest platform, even if you’re on a tight budget. Consider which solution offers the most value per dollar instead, including features you need at no additional cost. Sometimes the cheapest systems lack features that usually come standard and vendors charge additional fees for access to them.

“While some providers may provide cheap monthly rates, more money may be charged for additional features. I originally chose a VoIP service with a cheap basic rate, but I soon found out that there were extra costs for things like call recording,” Victor Zeng, global business director of XMAKE, told us. “Selecting a package that strikes a balance between price and vital features is crucial.”

Usability

Test the phone systems you’re considering whenever possible to determine how easy they are to use. Avoid platforms that require extensive training, as they’re likely to frustrate your employees and disrupt productivity. The best business phone solutions are relatively intuitive and won’t take long for the average user to navigate successfully.

Reliability

Review the provider’s SLA and ask what happens if the service becomes unavailable. A 99.999 percent annual uptime commitment corresponds to roughly five minutes of downtime over a 365-day year, but coverage, exclusions and remedies differ by vendor. Test calls on the networks employees will use and decide how your business will redirect calls during an internet or power outage.

Mobile capabilities

Today, it’s common for workforces to be distributed, whether your team includes remote and hybrid workers or you manage a fleet of drivers. While desk phones and conference calling systems may be important in an office, softphones and mobile apps are key for employees who aren’t always on site.

“In our field of work, we’re always moving around from state to state, talking with drivers, customers and logistics partners. We needed a phone to communicate smoothly, whether at the office or on the go,” said Zach Asher, owner of Amerigo Auto Transport. “A key selling point for Dialpad was its solid mobile app. It can also switch calls from desktop to mobile without dropping them.”

Integrations

The best business phone systems tie into your existing tech stack. Consider the business software you already use and which apps must integrate with your business phone system. Generally, this will include tools like your CRM and contact center software.

“When choosing a system, we prioritized scalability and integration capabilities,” said Kevin Shahnazar, founder and CEO of FinlyWealth. “As a fast-growing startup, we needed a solution that could grow with us and seamlessly integrate with our existing CRM [software] and productivity tools.”

Start with the devices, internet connections and call flows your employees will use. Ask the provider for its network requirements, then test real calls from the office and common remote work locations. Create users, assign numbers and configure reception menus, voicemail and after-hours handling before moving your main business number.

A new app-based number can be available before a transferred number is ready. Porting depends on the losing carrier, the type of number and accurate account information; messaging registration may follow a separate approval process. Keep your existing service active until the transfer succeeds and confirm the cutover date with the new provider.

Before switching, ask which party manages number transfers, what equipment must be replaced and how support handles a problem during cutover. Train a small group first if the system changes how employees answer calls or manage customer messages. Test outgoing caller ID, transfers, voicemail, routing and any essential integrations before expanding the rollout.

For terminology and number options, see our guide to VoIP phone numbers. If you need dedicated marketing campaigns, compare the best text message marketing services.

At Business News Daily, our team of small business unified communications experts has been researching and testing business phone systems for years, comparing some of the leading solutions across more than 25 key metrics.
We considered 75 business phone systems in our initial pool of candidates. To determine which to test further, we looked at pricing plans, hardware options, core features, reported system uptime and the availability of customer support. We also considered the setup process for each business phone system and prioritized the ones that were straightforward and quick to get up and running. Finally, we considered customer reviews to determine which vendors seemed to deliver on their promises according to real-world customers.

After narrowing our list down, we closely reviewed and tested 20 of the solutions before selecting our 10 best picks above. This testing started with scheduling live demonstrations to get an overview of each business phone system and asking questions of company representatives to learn more about the system itself and the service the vendors provide. We also accessed free trial software to get a firsthand sense of how each phone system worked, and we looked for tutorial videos and guides to see whether new users could get up to speed quickly with nothing more than self-guided materials.

Below are the factors we considered when determining our best picks. Each is weighted according to how much the criteria typically influence business owners’ buying decisions.

• Pricing (30%): We considered not just the platform’s base cost but also the number of pricing plans, costs for each user and add-on fees for additional services to determine which provides the most value per dollar.
• System Features (25%): We particularly evaluated the key tools most businesses seek in phone systems, such as automated attendants, call recording, call parking, call forwarding and call blocking. We also considered whether the platform offered additional communications services, such as online faxing, video conferencing, internal instant messages and text messaging.
• Usability (20%): We paid close attention to how simple it was to set up the phone solution, how intuitive we found the navigation and use of key features, and the training and informational resources available to new users. We also considered whether the vendor offered a desktop and mobile app that ensured users could take calls from anywhere.
• Customer Support (15%): We examined the ease with which customers can contact the team for help, and we reviewed customer feedback to determine how well the customer service team meets the needs of existing customers.
• Equipment Options (10%): We considered the amount of hardware included with each business phone system’s base subscription cost. Some providers include free desk phones, such as those from top providers like Cisco, Poly and Yealink, or conference systems, while others only provide access to software and charge extra for phones. Those that included hardware received extra consideration when selecting our best picks.

In addition to scoring each business phone system we reviewed based on these criteria, we also determined the best use case scenarios for each. No two businesses are exactly alike, so we put ourselves in the shoes of different types of small business owners to identify the best communication systems for a variety of needs.

To learn more about how we review and test communications products and services for small businesses, read about our editorial process.

When choosing a business phone system, one of the most important decisions is whether to go with a VoIP system or stick with traditional landline phones. Understanding the key differences can help you make the best choice for your business needs. VoIP systems transmit calls over the internet, while conventional phone systems rely on copper wires and physical infrastructure. These setups bring a variety of advantages and disadvantages.

Advantages of VoIP systems include:

• Cost savings: VoIP eliminates the need for expensive physical infrastructure and reduces long-distance charges.
• Scalability: Adding new lines is as simple as a few clicks, without requiring physical installation.
• Mobility: Employees can make and receive calls from anywhere with an internet connection.
• Advanced features: Video conferencing, voicemail-to-email, call recording and mobile apps come standard,
• Integration capabilities: Easily connect with CRM systems and other business applications.

Advantages of traditional phone systems include:

• Widespread availability: Copper wire networks reach areas with poor internet coverage.
• Familiarity: Many businesses are comfortable with traditional systems and existing equipment.
• Independence from internet quality: Call quality isn’t affected by bandwidth limitations.

However, traditional systems have significant drawbacks:

• Higher costs: Expensive hardware, installation and ongoing maintenance fees hurt businesses financially.
• Limited functionality: Landlines only support basic voice calls, not modern communication features.
• Scalability challenges: Adding lines requires physical installation and equipment.
• Location dependence: Phones are tied to specific physical locations.

A report from Research and Markets shows that the VoIP market is expected to exceed $280 billion by 2030. This indicates strong business adoption of internet-based phone systems over traditional phone services.