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Best Business Phone Systems of 2021

By Chad Brooks,
Business News Daily Staff
| Updated
Jan 25, 2021

Here are the best business phone systems and services for small businesses in 2021, including solutions for remote employees and microbusinesses.
Best Business Phone Service
Cloud system
Best for Very Small Businesses
On-premises/cloud system
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Best for Small Businesses
Cloud system
Best Virtual Phone System
On-premises/cloud system
Here are the best business phone systems and services for small businesses in 2021, including solutions for remote employees and microbusinesses.
Updated 01/25/21

This page has been updated with information on a new RingCentral acquisition which promises to make the company's video meetings "smarter."

Business phone systems no longer serve as a tool for simply making and receiving calls. Today's unified communications systems allow employees to communicate by phone, video, and text, which is giving businesses the flexibility to connect with customers and clients in any way they prefer. The business phone system market has grown by leaps and bounds in recent years, with dozens of options to choose from, which makes finding the solution that's right for your business a difficult task. To help in the search process, we researched and analyzed more than 75 providers. Our best picks are below, as well as a comprehensive list of phone system and unified communications providers in case our choices don't fit your needs. To learn more, read our guide on choosing a business phone system.


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Our Reviews

RingCentral: Best Business Phone Service

RingCentral Office is a cloud-hosted VoIP unified communications system that serves all types of businesses. This system is easy to install and use, and it has a vast array of calling, collaboration and mobile features. It is available in multiple service plans that work for small, midsize or large organizations.

cloud-hosted system only requires access to a high-speed DSL, cable or fiber optic connection. RingCentral provides an implementation specialist who walks you through each step of the installation process, ensuring that your service works perfectly from the start.

Once it is up and running, RingCentral takes multiple steps to ensure it stays that way. It uses redundant data centers worldwide and a seven-layer security process. Taking these precautions and more, RingCentral maintains a 99.999% uptime.

What really sets RingCentral apart from competitors is its wide selection of features. Virtual receptionists, hold music, call forwarding, call recording, call screening, call logs, message alerts and answering rules are among the available call management features.

In addition to the calling features, RingCentral's collaboration tools make it a true unified communications system. It offers a conference bridge that can support calls with up to 1,000 callers and video conferencing services that allow each user to host their own video meetings, complete with screen sharing.

January 2021: In an effort to make video meetings "smarter," RingCentral announced its acquisition of DeepAffects, a conversational intelligence company that uses artificial intelligence to analyze business conversations to identify meaningful insights. The DeepAffects platform can recognize emotion, identify individual speakers and convert audio to text.

For employees who are regularly on the go, the RingCentral app makes sure they are always connected to their business phone lines. Using the app, employees can make and receive calls from their business lines. The service also includes a softphone that turns their computer into a phone.

Read Review

Ooma: Best for Very Small Businesses

Ooma Office is designed specifically for very small businesses. One reason this is a great option for microbusinesses is how the system works. In addition to a traditional cloud-hosted system that work with IP phones, Ooma Office offers a version that combines on-premises hardware with cloud-hosted services.

November 2020: Ooma Office recently added video conferencing services to its phone system platform. The video conferencing services are included as part of the Ooma Office Pro plan; there is no additional cost for video conferencing. The service can support up to 25 participants simultaneously, and it supports screen sharing. You can join Ooma video conferences via any web browser or the Ooma desktop app.

There are several reasons why this setup is good for very small businesses. Firstly, someone without any technical experience can set up the system in just a few minutes. All you need to do is plug in the system's base unit, which is a full router that can prioritize voice traffic over other online traffic, and then connect the base unit to a high-speed internet router. The system is compatible with both analog and IP phones and can be managed in an online portal.

Very small businesses will also be pleased with the features it includes. While it doesn't have the vast array that some services offer, it does include those that microbusinesses will find most valuable. Among those are voicemail, call transfer, call log, call park, music on hold, extension-to-extension calling and dial-by-name calling.

A virtual receptionist answers all incoming calls. The receptionist then directs callers to the person or department they are trying to reach. Virtual extensions for remote workers, conference calling and ring groups are some other important features.

Ooma Office provides good customer service, and its website has valuable resources to help businesses troubleshoot any problems they run into. With this level of support and resources, keeping this business phone system up and running without a full-time IT team won't be a problem.

Read Review

Nextiva: Featured Sponsor

Nextiva combines VoIP phone service, a CRM and help desk software into one cloud-hosted platform.
The platform includes an array of calling, productivity, mobility, conferencing and collaboration tools.
The Essential plan only includes audio conferencing with up to four participants.

Used by more than 100,000 companies across the U.S., Nextiva's VoIP phone system is a cloud-based, cost-effective unified communications solution that can easily scale up or down. It offers a robust set of features like advanced IVR, call routing, VoIP mobile app for iOS and Android, a desktop app for MacOS and Windows, call recording, voicemail-to-text, virtual fax, deal tracking, ticket management, sentiment analysis, analytics, reporting dashboards and more. Additionally, Nextiva provides numerous collaboration tools, including video conferencing, screen sharing and team chat. The system is extremely reliable and secure. Nextiva hasn't had any service outages since 2017. The Nextiva platform also offers a built-in CRM solution that effectively knows and manages your customers.

Read Review

8x8: Best for Small Businesses

8x8 offers everything a small business needs in a phone system. This is a cloud-hosted VoIP unified communications system that doesn't require expensive PBX hardware or a trained IT staff to set up or maintain. All it needs is high-speed internet access and IP phones. This makes setting up and maintaining the phone system easy for small businesses.

The service is among the most reliable we found. It uses redundant data centers around the world, so service isn't interrupted if one goes down. 8x8 boasts a 99.999% uptime, which means service is down for just a few minutes each year.

Another impressive aspect of 8x8 is its vast array of calling, collaboration and mobile tools. It has all of the features small businesses are looking for in a unified communications system, including three-way calling, call forwarding, call waiting, call transferring, online voicemail, automated attendants, ring groups and caller ID.

For businesses that prioritize collaboration, 8x8 offers more valuable tools. Among them are a conference calling bridge that lets each employee host conference calls with up to 50 participants at a time, and video conferencing services that allow each user to host video meetings with up to 50 participants at a time. Internal online chat tools and presence features are also available.

The ability for employees to tap into their phone systems from outside the office is an important consideration for small businesses. The 8x8 mobile app ensures users have access to their business lines wherever they are. With the app, you can make and receive calls from your business line, as well as make video calls, record calls and check your voicemail.

Other factors that make 8x8 an excellent choice for small businesses are its integrations with numerous popular programs like G Suite, Office 365, and Salesforce and the company's top-notch customer support. The customer service was among the best we encountered during our research of office phone systems for small businesses.

December 2020: 8x8 has slightly altered its pricing. While the Express plan remains at $12 per user, per month, the X2 plan now costs $24 per user, per month when paying annually and $32 per user, per month when paying monthly. The X4 plan now costs $44 per user, per month when paying annually and $57 per user, per month when paying monthly.

Read Review

Grasshopper: Best Virtual Phone System

Designed for businesses with on-the-go employees, Grasshopper is an ideal solution for businesses in need of a system that allows them to present a professional image at all times, regardless of where their employees are working from. Grasshopper enables that by connecting business phone lines to remote workers on their mobile and home phones.

The system gives your business its own dedicated phone number and each employee their own extension. When a customer or client calls the main business line, they are greeted by an automated attendant, which then connects the caller to the employee they are trying to reach. Instead of connecting the call to an office phone, the system sends the caller to any phone of the employee's choosing. This could be a mobile phone, a home phone or any other number.

Employees have full control of where their callers are directed. They choose the numbers their calls will be forwarded to and the order in which those numbers will ring. From the caller's perspective, the experience is exactly the same as calling a traditional phone system.

Grasshopper includes a number of other important features, such as voicemail, voicemail-to-email, voicemail transcription, on-hold music, dial-by-name directory, call screening, online faxing and business texting. Each user can also host conference calls with up to 10 participants at a time.

Grasshopper has a sophisticated mobile app that allows employees to make and receive calls on their business lines and send and receive business text messages. This keeps personal calls and texts separate from business calls and texts. The app also lets users make and receive calls using an internet connection, instead of their cell reception.

Read Review

Unified Communications

Today's unified communications systems give employees the freedom to communicate by phone, video and text. The best systems are easy to use, with a wide range of calling, collaboration and mobile features that give users the flexibility to connect with customers in any way they prefer. To help in the search process for system that works for your business, we researched and analyzed more than 75 options. Our best picks are below, as well as a comprehensive list of phone system and unified communications providers in case our choices don't fit your needs. To learn more, read our guide on choosing a business phone system.

Unified Communications

Today's business phone systems offer much more than just a way to make and receive phone calls. Many of today's solutions, including some of our best picks, are considered unified communications systems.

Instead of focusing solely on a business's calling needs, unified communications systems support all of the ways employees now communicate with customers, clients and co-workers. This means not only traditional phone calls, but audio conferencing, video conferencing, instant messaging, online faxing and text messaging.

While many organizations offer these services to their employees, each component used to be provided by a different vendor. A business might have had one provider for its phone system, another for its conference calling and a third for its video conferencing. Unified communications systems tie all of that into one platform.

These are the main components of a unified communications system:

  • Phone calls: This is traditional phone service that allows employees to make and receive calls. Most providers offer a local and toll-free number.

  • Conference calling: Unified communications systems include a conference bridge that allows each user to host their own conference calls. The number of people who can be on a call at one time depends on the provider. Some systems allow conference calls with 5-10 people, while others allow for hundreds of people at one time.

  • Video/web conferencing: This allows employees to host video meetings with video conferencing hardware, or through a computer equipped with a camera and microphone. Employees can host meetings and see others' faces on the call. In addition, most of these services allow screen sharing, which lets everyone in the meeting view documents or presentations together. The number of participants who can be on a video call at one time varies by provider. It could be just a handful or as many as 100.

  • Instant messaging: Many unified communications systems provide the ability for employees to instant message each other. By logging in to the system, they can send messages back and forth to ask questions and collaborate on projects.

  • Text messaging: Since texting has become so popular, some solutions allow you to send text messages from your business line. This allows you and your employees to send text messages to customers without them seeing your personal numbers.

  • Faxing: These systems allow you to send online faxes rather than using a dedicated fax machine. You can send a fax to a recipient's email or fax machine from the platform.

Having all of these tools on one platform can make communication much easier for employees, making them more productive in turn.

Cloud-hosted systems have really driven the expansion of unified communications systems. Instead of paying tens of thousands of dollars for an on-premises system that houses all of these features, you can get all of this through a cloud-hosted service for a low monthly, per-user fee.

Business Phone System FAQs

Q: What kinds of businesses benefit most from a good phone system?

A: All businesses can benefit from a good phone system. That doesn't mean that all businesses benefit from the same type of system, however. Communicating with your customers and clients in a professional manner is critical for businesses today. That's why relying strictly on mobile devices can cause problems for businesses. You want to give your customers a great impression of your business. A greeting from an automated attendant is a great first step; it shows that your business is a legitimate operation.

That's why businesses that don't need a traditional office phone system should consider investing in a virtual phone system. These systems allow businesses to present that professional image while still relying on their mobile devices as their main communication tools. Virtual systems include automated attendants and a host of other valuable features. In addition, when you make outbound calls, your business number, not your mobile number, is displayed to the person you are calling.

For larger businesses, business phone systems not only allow you to present a professional image to your customers, but also give your employees all of the communication tools they need to do their jobs. Access to mobile apps, which allow them to take their business lines with them wherever they go, and video conferencing services ensure your staff can connect with anyone, regardless of where they are and how they want to communicate.

Q: What is unified communications?

A: Unified communications is the ability to access all of your communication tools from one platform. Many of today's business phone systems are unified communications systems. While these systems still offer traditional phone service, they also include other communication tools that professionals now rely on.

The additional features in unified communications services include audio conferencing, video and web conferencing, instant messaging, and text messaging. Previously, in order to have all of these communication tools, organizations had to use a different service provider for each. Unified communications streamlines the process by allowing you to access all of these tools from the same provider. This not only boosts production among employees, but can also be a significant cost-saver for businesses.

Q: What is the best business phone system?

A: Since every business is different, it is hard to say that one business phone system can fill everyone's needs. That's why our recommendations for the best business phone systems are based on different use cases, like best for small businesses, best for remote employees and best for call centers.

For each use case, we looked at the functions and tools that type of business would need from a phone system. We then compared and contrasted the various phone system providers based on those criteria.

After our research, we recommend 8x8 as the best business phone system for small businesses, Ooma Office as the best business phone system for very small businesses, RingCentral as the best business phone service, and Grasshopper as the best virtual business phone system.

You can read specifics on each selection in our in-depth reviews, and you can see more details on how we selected them below in our Methodology section.

Q: When is the best time to invest in a good phone system for your business?

A: In today's highly competitive market, there isn't a bad time to invest in a business phone system. There are so many providers out there trying to land customers that they are always offering some sort of discount or incentive to sign up. This could be a few months of free service, free phones or discounted rates.

That being said, we have noticed a lot of providers seem to ramp up their incentives near the end of each quarter. As they close their books on the quarter, most providers want the best numbers possible, so they look for anything they can do to add some more clients before the month flips over. You might want to consider that timing before you start talking to providers.

Q: What is the difference between a business phone service and a business phone system?

A: There aren't many differences between a business phone service and a business phone system. Both provide you with all the tools you need to effectively communicate with those inside and outside of your office. 

To judge business phone service, you look at how well the system runs. Is the phone service reliable? This is especially important for cloud-hosted PBX systems. Traditionally, business phone services were all based on landlines. Reliability was rock-solid because everything was hardwired, and you weren't dealing with the internet. Today, as cloud-hosted PBX business phone systems become increasingly popular, finding a business phone service that offers the same reliability as a landline system has become crucial.  

One of the key factors to determine reliability is uptime statistics. Uptime is how often a cloud-based phone system is up and running. One of the most important elements of a business phone system is that you can pick up the phone and make a call whenever you need to and that whenever someone is calling you, they can get through. The best business phones services and systems have uptimes of 99.999%. This means that service is down for just a handful of minutes each year. Some business phone service providers go as far as to guarantee their uptime – if it ever falls below a certain threshold, they will reimburse you.

Q: What are the main differences between phone systems for small businesses and phone systems for large businesses?

A: What makes today's cloud-hosted unified communication systems so appealing to small businesses is that they provide the same functionality as systems that large businesses use.

Before the advent of VoIP and cloud-hosted solutions, large businesses were typically the only ones that could afford the expensive onsite equipment for a robust phone system with a wide selection of features, like automated attendants, extension dialing and call queues.

VoIP, specifically cloud-hosted VoIP phone systems, have leveled the playing field. There is no longer an expensive point of entry required, so small businesses can easily implement these systems in the same way large businesses can.

One difference might be the service tiers small and large businesses choose. While small businesses might choose a lower-tiered plan that doesn't offer every feature under the sun, larger businesses may be able to afford the more expensive plans that give them access to everything the phone system provider offers.

Q: How much does a phone system cost for small businesses?

A: The cost and the pricing structure of a small business phone system depends on where the system will be hosted. If it is hosted in the cloud, all you have to worry about are ongoing monthly fees for each user. Prices are typically $10 to $60 a month per user, depending on how many features and tools you want.

If you want to host your business phone systems on-premises (inside your physical business location), you need to plan for one-time upfront costs. For all of the equipment and installation, you can expect to pay several thousand dollars. In addition, there will likely be recurring monthly payments for your actual calling services.

Q: How do you set up a small business phone system?

A: A huge benefit of today's business phone systems is how easy they are to set up. VoIP systems are completely managed from an online portal. Administrators can log in to the portal to assign phone numbers and extensions, add new users, delete users, and turn features on or off for individual users. You can access this portal from anywhere with an internet connection.

Q: Who benefits most from VoIP office systems?

A: Employees are the ones who can benefit most from a VoIP business phone system. These systems provide employees with tools to facilitate all of their communication and collaboration needs. Voicemail-to-email, call recording, instant messaging and call forwarding are some of the valuable tools employees can access.

Additionally, VoIP systems allow tons of mobility. Many offer their own mobile apps that give workers the freedom to make and answer calls to and from their business lines via their mobile devices. This helps ensure they never miss an important call.

Small business owners also are huge beneficiaries of VoIP office systems. These systems give small businesses access to tons of features and tools that were previously only affordable for larger organizations. The ability to install these systems for a relatively low price is a huge advantage for small businesses.

Q: Can you use a VoIP phone as a regular phone?

A: Technically, there are IP phones and analog phones. Most of today's VoIP phone systems use IP phones. These phones plug directly into your internet router and are essentially ready to start making and receiving calls at once.

In order to use an analog phone with many of today's VoIP systems, you need a special adapter that allows these phones to connect to your network.

How to Choose a Business Phone System

There are multiple factors to consider when choosing a business phone system provider. First and foremost, you want to ensure the system has all of the functions and features your business needs. Can it support the number of employees who need the service? Does it have all of the features your business relies on or would benefit from?

While some businesses only want standard calling features like caller ID and voicemail, others want added functions like ring groups, automated attendants and on-hold music. Also consider any other communication tools your business needs. Are you strictly looking for a system that allows you to talk over the phone, or are you in the market for more of a unified communications system that adds functions like video conferencing and instant messaging? Your answer to this question will guide you in your search for a new business phone system.

Another factor to consider is a business phone system's reliability. A phone system is of no use if it isn't up and running when you need it. This is especially important for a cloud-hosted solution. Ask each provider what its annual uptime percentage is. If it isn't 99.999%, find out what the company is doing to correct the issues. Also ask about its service-level agreements and if it has any uptime-related clauses. Many business phone system providers will give users money back if the system doesn't hit a certain uptime percentage.

If cloud-hosted systems aren't a fit for your business, you need to find a phone provider that offers on-premises systems. With an on-premises system, instead of the PBX being hosted in the cloud, your business houses all the equipment. These systems have more upfront costs but not many of the ongoing monthly fees that cloud-based systems do.

Very small businesses may want to consider whether they need a true phone system with onsite desk phones. Businesses that can get by with just mobile phones will want to look into a virtual phone system. These systems connect a main business number to employees' mobile phones. When someone calls the main business number, they are greeted by an automated attendant that can transfer them to different employees or departments. The call is then transferred to the appropriate employee's mobile phone instead of a traditional office phone. Virtual systems are a good fit for very small businesses, businesses with a large remote workforce and solopreneurs.

Finally, what type of customer support does the company offer? If you don't have a full-time IT staff that can handle any issues, you want a business phone system provider that will be available to answer questions when you have them, preferably through multiple channels and online resources.

Key Features of Small Business Phone Systems

Today's business phone systems offer dozens of valuable features for small businesses. This is one of the true benefits of the cloud-hosted system: Cloud-based phone systems have opened the door for small businesses to access all of these features without spending a ton of money. Previously, only larger businesses could afford feature-rich systems because of the capital required to install all of the necessary equipment.  

Small businesses may benefit from these features, among others:

  • Unlimited calling: Many of today's cloud-hosted VoIP phone systems include unlimited domestic calling for no additional charge. This gives you a fixed cost for the monthly service that doesn't fluctuate based on how many calls your business makes and receives.

  • Automated attendants: This answers calls made to your business and routes calls to the proper employees or departments.

  • Ring groups: This feature allows you to group employees together so that, if someone calls needing someone in that group, all of their phones will ring. You can choose for phones to ring in a specific order or all at the same time.

  • Voicemail: In addition to traditional voicemail service, many business phone systems offer voicemail-to-email functionality. This sends either audio recordings or transcriptions of voicemails to the user's email inbox, so they can read or listen to their messages even if they are away from the office.

  • Call recording: This gives phone systems users the ability to record their calls. Calls are then stored in the cloud or on their computers for playback later.

Other valuable features many business phone systems offer include extension dialing, call forwarding, call queues, and integrations with services like Microsoft Office and G Suite.

These systems also offer features that can boost a business's collaboration abilities, such as video conferencing, instant messaging, presence indicators and online meetings. 

Types of Business Phone Systems

Businesses in need of a multiline phone system have several options. The choices vary based on where equipment is housed, how connections are made and the cost structure, among other things.

The equipment that provides the functionality to make and receive calls is a private branch exchange. PBX technology, whether it is housed onsite at a business or in the cloud, is what gives businesses all of the features and tools unified communications systems offer, like automated attendants, call queues and ring groups.


Landline phone systems use traditional phone system connections and wiring provided by local and regional phone companies. These systems require onsite PBX equipment that your in-house IT team maintains and upgrades. These systems require a large upfront capital expenditure for all of the PBX equipment. Landline systems are falling by the wayside, as more and more phone system providers are no longer making equipment to support this type of business phone system.


Instead of using traditional copper wiring connections like landline systems do, Voice over Internet Protocol (VoIP) systems rely on internet connections to facilitate calls. This allows you to run your phone system off of the same internet connection your company uses to go online. There are two different types of VoIP systems:

  • Cloud-hosted VoIP: Cloud-hosted systems house their PBX equipment in the cloud. This means that the phone system provider is responsible for maintaining and upgrading it. To use a cloud-hosted system, all you have to do is plug your business's configured IP phones into your local area network. These systems don't require any upfront costs. Instead, businesses pay a monthly per-user fee. Costs usually range from $15 to $60 per user, per month.
  • On-premises VoIP: These systems are similar to landline systems in that the PBX equipment is housed inside your business. You are required to handle all of the maintenance. The difference is that these systems still facilitate calls via internet connection rather than landline. This gives your business more control over how the phone system operates and allows you to install any security measures you want. On-premises VoIP systems require large upfront capital investment as well as smaller monthly fees to cover the required connections for making and receiving calls.

Virtual Phone System

Another option businesses have is a virtual phone system. These systems don't require any equipment, not even phones. A virtual system works as an extensive call-forwarding tree. You set these systems up so that all of the calls to your main business number are automatically routed to your employees' mobile phones. You have total control over where calls are routed to and in what order. These systems only charge monthly fees.

Our Previous Best Picks

At Business News Daily, we are dedicated to finding the best products and services for small businesses. We know that your time is limited, and we invest hours into research and testing so you feel confident about our recommendations. 

Each year we update our best picks and use cases. We investigate changes and new companies in the industry, and we scrutinize new and existing products and services. Our process also involves revisiting companies we previously selected as best picks to evaluate whether they still are the best in their category. 

In addition to our business phone system recommendations this year, we have reviews of companies we previously selected as best picks:

Community Expert Insight

As part of our research, we reached out to unified communications system users to learn which systems they find most valuable and what they like about them.

The added features, especially those that allow users to stay connected while working from anywhere, is what attracted Trevor Rappleye, CEO of, to Ooma Office.

"What is most important to us when choosing a phone system (especially during COVID) is, how simple can it be to transfer calls to their cell phone?" Rappleye said.

He said the ability to customize their ring tones and hold music were other appealing aspects of Ooma. "If you call our number, Ooma has allowed us to add a fun touch to what we do."

Mark Kay, business expert and content manager at GearTec, said price and reliability were the key criteria his company used when choosing a business phone system. This is why they also chose Ooma Office.

"It's a VoIP phone system that is very cost-effective and gives you unlimited lines," Kay said of Ooma. "Ooma also allows you to use the office desk phone at home or use a mobile app to make and receive calls."

Grant Aldrich, founder and CEO of, said Nextiva offers the perfect entry-level business phone system. He pointed to the affordable price and the ease of routing calls from a business line to a home or mobile phone are why he likes Nextiva's service so much.

"With a small home office, this means that if I am spending time watching the kids, I can route incoming calls which I don't have time for to voicemail, or this [call] which I don't want to miss can be set into a three-minute holding pattern," Aldrich said. "This is the perfect amount of time I need to get my kids set up with a 30-minute task, and then I can get to the important call I don't want to miss."

What to Expect in 2020

The number of businesses opting for a cloud-hosted business phone system has grown tremendously over the last few years. While many businesses were previously skeptical of moving their communication platforms to the cloud, fears of bad connections and spotty service seem largely forgotten. 

New research from Statista shows that the market for VoIP cloud-hosted systems is projected to outpace on-premises systems for the second-straight year in 2020. The gap between the two is expected to widen over the next five years. By 2024, the study projects the VoIP hosted market to surpass $13 billion, compared with only $9 billion for on-premises solutions.   

As more businesses turn to cloud-hosted systems, the security of these unified communications solutions will continue to be a priority in 2020. Mitel is one company that put renewed effort into its security practices in 2019. To ensure its systems comply with HIPPA and SOC 2, the unified communications provider has begun hosting its cloud VoIP system in Google Cloud. Knowing the importance of online security to today's consumers, we expect other business phone system providers to make sure their solutions are free from prying eyes.  

Another trend we expect to continue in 2020 is an increase in the number of business phone system providers offering built-in customer relationship management solutions. Many phone systems already integrate with third-party CRM software, but some unified communications systems have begun including CRM functionality as part of their core offerings.

Nextiva is one example. Its business communications suite gives all users, regardless of the service level they select, access to CRM features such as call pops, sales pipeline management tools, contact management and account history information. With many businesses looking to consolidate the programs they use, it will be a surprise to us if more providers don't start adding their own built-in CRM solutions.

October 2020: In the wake of the COVID-19 pandemic, new data from 8x8 shows just how popular all-in-one communications platforms have become with many businesses now operating remotely. The 8x8 study found that usage of desktop and mobile apps for voice calls, video conferencing, team chat and SMS increased by more than 107% between January and September of 2020.

Not surprising, time spent in video meetings has increased by more than six times over the first nine months of the year. The increase in video calls may be leaving some employees with video fatigue, which has also resulted in increased voice calling. The 8x8 survey revealed that the average daily call volumes using desktop and mobile communications apps have grown by more than 138% since January.

"The rapid shift to remote work has been truly transformational. It is forcing organizations to reassess how they communicate and collaborate, as well as support current employees and customers while attracting new ones, all without physical connection,” said Dejan Deklich, chief product officer at 8x8, in a statement.

Our Methodology

To help you find the right business phone system, we researched and analyzed dozens of options. Here is a roundup of our 2020 best picks for business phone systems and an explanation of how we chose them.


Locating the Best Services

To determine the best business phone systems, we started by listing all of the vendors that have good reputations online (i.e., services that other websites have favorably and consistently reviewed). Next, we interviewed small business owners to learn which systems they use and like. If they named a new system not on our list, we added that company to our preliminary list. Overall, we considered nearly 80 different phone system providers. (See our full list of business phone systems and their websites below).

Choosing the Best Services

We settled on these 23 phone systems to consider as best picks: 8x8, AT&T, Avaya, Cisco, Comcast, Dialpad, Digium, ESI, eVoice, FluentStream, FreedomVoice, Grasshopper, Intermedia, Jive, Mitel, Nextiva, OnSIP, Ooma Office,, RingByName, RingCentral and Vonage.

Researching Each Service

Next, we researched each provider by investigating its services, watching tutorials and how-to videos, and reading user comments. We also contacted each company's customer service department, posing as business owners, to gauge the support each provider offers. Finally, we considered the pricing that was viewable on these services' websites or what they quoted to us in our customer service calls. We analyzed each system based on its deployment options, level of service, reliability, customer service, calling features, collaboration tools, mobility options, cost, and Better Business Bureau accreditation, ratings and complaints.

Chad Brooks
Chad Brooks
Business News Daily Staff
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Chad Brooks is a Chicago-based writer and editor who has spent more than 20 years in media. A 1998 journalism graduate of Indiana University, Chad began his career with Business News Daily in 2011 as a freelance writer. In 2014, he joined the staff full time as a senior writer. Before Business News Daily, Chad spent nearly a decade as a staff reporter for the Daily Herald in suburban Chicago, covering a wide array of topics including local and state government, crime, the legal system and education. Chad has also worked on the other side of the media industry, promoting small businesses throughout the United States for two years in a public relations role. His first book, How to Start a Home-Based App Development Business, was published in 2014.

Full List of Business Phone Systems

This VoIP service provider offers different plans based on the number of users a business has. The smallest plan accommodates up to five employees, while the largest one supports up to 100 users. Plans include digital call forwarding, cell phone redirecting, extension monitoring, call parking, intercom service, call waiting, auto-attendants, digital queues, custom hold music, voicemail, call recording and other features. 1-VoIP also offers SIP trunking services.
3CX is the developer of a software-based and open-standard IP PBX, which replaces proprietary PBXs. With integrated WebRTC web conferencing, softphones for Mac and Windows, and smartphone clients for Android, iOS and Windows phones, 3CX offers companies a complete unified communications package.
With Abcom, you get access to the company's full VoIP feature set for one set price per extension. Some features include all page/intercom, automatic answer bode, blacklisting, named ring groups, voicemail-to-email, conference calling and more.
AirePBX is a cloud-based phone system that provides unified communications as a service (UCaaS). With AirePBX, you can work from your desk phone, smartphone, tablet, desktop computer or laptop. AireSpring preconfigures equipment and dispatches a technician to perform professional onsite installation and ensure that the communications system works perfectly. Call center services are also available.
All Call Technologies is a virtual phone system. There is no equipment installed in your office and no changing of your current phone carrier. All Call Technologies' virtual receptionist answers your calls with a professional greeting and gives callers their options. Outgoing greetings are professionally recorded and programmed to your specifications. The backup attendant service takes calls only when your office lines are busy or not answered, while the auto-attendant service plays a menu greeting immediately when someone calls. In addition, the Entrepreneur and Partner plan provides one central phone number with extensions to reach you, your partners and staff via cell phones.
Allworx provides a complete portfolio of VoIP systems, IP phones, network switches and advanced software options. It is available to small and midsize businesses through a network of more than 1,000 independent resellers in the U.S., Canada and Latin America. The company also offers Windstream IP Simple, a managed monthly subscription service that combines Allworx with VoIP and data services from Windstream.
AT&T Business in a Box is a VoIP solution for small businesses and satellite locations that provides the benefits of advanced voice and data technology without the complexity of managing it. This solution enables voice and data services to work over a single network connection and device. The company also offers AT&T Unified Communications Voice, a cloud-based IP telephony solution that offers a variety of voice features, as well as call center solutions.
AXvoice is a cloud-based system for independent entrepreneurs, and single-office and home-office professionals. The service has more than 30 inbound and outbound calling features, including caller ID, caller ID blocking, hold music, simultaneous ringing, do-not-disturb options, call filtering and anonymous call rejection. In addition, the system allows employees to manage their voicemails via the web.
Blueface provides cloud-based phone systems to businesses of all sizes worldwide. While many hosted providers rely on third-party platform technology, Blueface's technology is 100 percent proprietary, which allows it to guarantee reliability and service availability. Blueface users have the option to keep their own phone numbers when signing up for the service, as well as hold up to several international phone numbers that all direct to one account. Features include unified voicemail, call recording, fax-to-email, call parking and time-of-day routing.
Booth is a virtual phone system that allows you to run your business through your cell phone. It works by creating call rules that allow you to route calls based on time of day or who's calling, or through an integrations platform. Through the integrations platform, you can connect with software that you already use, such as Google Calendar, and have calls sent to voicemail or a colleague when you are in a meeting, or to your cell phone when you're available. Booth's other features include auto-attendants and business hour rules.
BroadConnect is a business VoIP service provider that has many advanced features, such as video and audio conferencing, mobility, custom IVRs, voice broadcasting, and call analytics. The company offers a variety of phone system types for businesses of all sizes, including hosted PBX, SIP trunking and call center solutions.
Cebod Telecom provides cloud-based telephony solutions for businesses of all sizes. The company offers a phone service model that allows businesses to pay per line, as opposed to per user. Cebod Telecom provides a wide variety of basic and premium IP PBX and dial-tone features, including auto-attendants, call tracking, call logs, hold music, call forwarding, voicemail, call queues, conference bridges, online faxing and SMS.
Cloud Phone is a virtual phone system that can answer, route and manage your calls. There are no phones or equipment to buy, because the system is fully managed in the cloud. Extensions can be set up to route calls to the mobile app or other numbers. Features include an auto-attendant, call recording, call screening, conference calling, online faxing and voicemail transcription.
Cloud Phone Answering is a live telephone answering service that provides your business with a friendly, professional receptionist who will answer your phone and handle your calls just as you wish. With the receptionist service, you choose a local phone number. Clients and customers can call that number directly, or you can divert calls made to any other number, such as your mobile phone, to your new number. The receptionist then answers any calls that you can't get to and sends you your messages via email or text.
EpikNetworks is a cloud-hosted VoIP phone system that is run over a privately managed, secure data network. It includes native mobile apps, voice and video conferencing, messaging, online meetings and more.
Evolve IP's phone systems free businesses from managing carriers, hardware and vendors by providing a hosted PBX with unified communication features to any user in any location. The phone system features group directories, three-way calling, call forwarding, overhead paging, unified messaging, hoteling and simultaneous rings. Evolve IP also offers hosted call center services.
FacetCorp's FacetPhone is a full-featured VoIP business phone system with unified communications and full mobile access. FacetPhone has all the features needed in a business phone system, such as voicemail, auto-attendants and conference bridges. This on-premise system runs on either a Mac Mini or a Linux server.
FortiVoice has options for both traditional analog systems and VoIP systems. Both options offer a variety of features, including auto-attendants, dial-by-name directories, hold music, voicemail, voicemail-to-email, call logging and remote management. FortiVoice systems also allow for conference calls, call bridges, call waiting, call forwarding, call screening and caller ID routing.
Frontier offers VoIP-based phone systems with unlimited local and long-distance calling. Its OneVoice system, designed for small businesses, features voicemail, caller ID, call waiting, call forwarding, call hunting, and selective call acceptance and rejection.
A phone service provider that tailors to small businesses. Gabbit tries to offer lower prices than competitors to provide the most appealing option to small business owners.
Globalgig is a provider of VoIP phone, SIP trunking, hosted call center and hosted Skype for Business services. The company's VoIP system features an auto-attendant, hunt groups, voicemail-to-email and call recording. The call center services include an automatic call distributor, an IVR and hold music.
Handility's virtual phone system has an advanced drag-and-drop interface, giving you complete control over your call flow. Some of its many features include internal extension numbers, call forwarding, custom playback messages, voicemail-to-email, fax-to-email, conference calling, and custom SIP devices.
ICS offers VoIP and hybrid business phone systems for companies of all sizes. It has multiple products that can be designed as a pure IP solution, a pure digital solution or a hybrid.
Intermedia is a provider of 30 different cloud-based services, including business phone systems. The company's cloud PBX system offers a host of calling features, including call blocking, call recording, hold music and messaging, Follow Me, instant callback, ring groups, voicemail, voicemail-to-email, and web faxing. Intermedia's cloud PBX system has a 99.999 percent uptime and 24/7 customer support.
JustCall is a cloud-based phone system for sales and support teams in 58 countries. After choosing a number, you can make calls using that number from the web, mobile app or desktop app. All the incoming calls on your number will come directly to your mobile phone or the JustCall web or desktop apps. JustCall logs and records all calling activities automatically. The system also integrates with popular CRM tools.
Loop Communications provides hosted business phone systems to small and midsize businesses in North Carolina and South Carolina. The system features unlimited local and long-distance calling within the United States, an automated attendant, call forwarding, call recording, cell phone extensions, three-way calling, hold music, and voicemail-to-email. Loop Communications requires no long-term contracts.
MegaPath offers nationwide voice solutions for single-site and multisite businesses, including hosted VoIP with unified communications, SIP trunking, PRI trunking and analog lines. MegaPath's voice and unified communications services include advanced features like Find Me/Follow Me and visual voicemail, as well as SMS texting, instant messaging and presence, video calling, and screen sharing. The company also offers call center services.
MightyCall is a cloud-based, virtual phone system designed to simplify and improve customer access to support. With its mobile app, MightyCall consolidates client contact channels and captures every customer call, email and social media interaction, ensuring that every issue is handled in a timely fashion. Key features include SMS contact, a direct website-dialing widget, smart call forwarding, customized voicemails and call recording.
Mitel is our favorite business phone system for call centers because you can use it for your whole office as well as your call center employees. Mitel's phone system offers flexibility in hosting options, service plans, features and tools.
Moneypenny is a personal answering service. When someone calls your business number, if you're unavailable or simply don't want to answer the call yourself, the call is passed on to a Moneypenny receptionist. The receptionist can then transfer the call to either you or a colleague. If no one is available to take the call, the receptionist sends you a text or email, alerting you that you have a message waiting. Features of the service include toll-free numbers, local numbers, a bypass list and an online portal.
NetFortris offers both cloud-based and on-premises business phone systems. NetFortris, which recently merged with Fonality, offers phone systems that feature three-way calling, call holding and transfers, caller ID, and detailed call logs. There is also advanced call screening and routing, built-in presence and chat, and an auto-attendant. Call center services are available.
Nexogy is a cloud-based phone system that includes a host of features, including auto-attendants, unlimited hunt groups, voicemail-to-text, call parking, call forwarding and call recording. The company also offers contact center and SIP trunking services.
PanTerra CloudUC is a comprehensive, business-class cloud unified communications solution. The system integrates advanced PBX services, real-time team collaboration tools, unified messaging, contact management, file sync and share, and business analytics into a single solution that's accessible from desktops and mobile devices.
Phonebooth is a division of, a nationwide supplier of voice and data communication services to small and midsize businesses. Phonebooth OnDemand is a full-featured business phone system. You pay for as many users as you need and can add users as you grow. Businesses get unlimited local and long-distance calling, with a variety of business features, including auto-attendants, voice-to-email transcriptions, conference calling and call forwarding.
PhonePower provides small businesses with VoIP-based phone systems. The service includes three-way calling, call forwarding, anonymous call rejection, call logs, call waiting, caller ID and caller ID block, virtual faxing, and the option to keep existing numbers. Additional highlights of PhonePower's business phone systems are its online call management system, online dashboard, block lists, voicemail-to-email options, and iPhone and Android mobile apps.
Ring-u attempts to help small businesses in need of a phone system by offering affordable options. A simple setup process is another one of ring-u's strengths.
Sangoma Technologies provides unified communications systems to businesses of all sizes. It offers a wide range of on-premises and cloud-bases phone systems, SIP trunking services, and telephony hardware.
TDS offers a variety of business VoIP and phone solutions, including hosted VoIP service and SIP and PRI trunking services. Instant messaging, virtual collaboration rooms, voicemail-to-email, Outlook integration, call logs, call notifications and call forwarding are included in the hosted VoIP service.
Telzio provides cloud-based phone systems with voice, mobile, SMS, fax and conferencing solutions for small and midsize businesses. The phone system works with a standard internet connection and any SIP-compatible IP phone or softphone. Telzio's various plans include call forwarding, custom call flows, interactive voice response, opening-hours filters, conference calls and hold music. The plans also offer local and toll-free numbers, call screening, voicemail, caller ID, call logs, and the ability to keep your current phone number.
With Toky, you can make and receive calls from your website, phones and CRMs, all in one place. Call features include international phone numbers, IVR phone trees, simultaneous calling, call filters and transfers, bulk SMS and numerous integrations with existing programs.
Tresta doesn't require any special phones or hardware. You can set up and manage the phone system entirely online. After setting up the system, you can route calls to any phone. Tresta features auto-attendants, voicemail, call recording, and web, iOS and Android apps.
UnitTel Voice offers a virtual phone system that relies on your existing cell phone. You can choose a toll-free, local or vanity number or keep your existing business phone number. A professional greeting and phone tree directs callers to the appropriate employee, and calls can be forwarded to any phone of your choosing.
Verizon offers VoIP phone systems, unified communications systems and contact center services. Its VoIP offerings include IP trunking, IP integrated access, Virtual Communications Express and business connection services. The company can help integrate your voice and data traffic and provide a platform for layering networking products to support unified communications and collaboration (UC&C) solutions.
Virtual PBX's product offerings include hosted VoIP, disaster recovery, and phone, fax and email integration. The company's office plans are based on the number of lines you need. This service offers unlimited minutes and extensions, local and toll-free numbers, virtual receptionists, dial-by-name directories, virtual faxing, music and information on hold, day and night modes, and a web-based management system. It also offers small businesses call blocking, supervised call transfers and multistage dialing.
VoIPstudio is a cloud-based business phone system that offers a host of features, including unlimited calling, number portability, virtual numbers, hold music, conference calling, follow me, extension dialing, voicemail, ring groups, call queues and call barging. VoIPstudio also integrates with Salesforce, Oracle Sales Cloud and Microsoft Dynamics CRM software.
VoIPX is a cloud-based phone system and service provider for customers across the United States. The system includes more than 50 standard features, including auto-attendants, Follow Me, call recording, call blocking, successive or simultaneous ringing, voicemail-to-email, and customized hold music. Each customer receives a free phone when they sign a contract with VoIPX, and the company has a 24/7 U.S.-based customer support team.
Business phone system only available to businesses in Florida.
Windstream offers hosted phone lines for small businesses and sells Polycom IP phones.
Windstream offers hosted phone lines for small businesses and sells Polycom IP phones.
Xblue digital and VoIP phone systems' features – like hold, call transfer, conferencing and intercom – are already set up and ready to use when you first turn on your new system. Even voicemail is ready to receive messages on every phone as soon as the phone is connected to the system. Xblue's systems are hybrids, supporting both standard telephone company lines and internet-based VoIP lines. The two types of lines can be used at the same time. The company also offers cloud VoIP line service with no contracted period or early termination fee.
Zadarma is a cloud-based VoIP business phone system that offers a wide range of features, including IVR, call transfers, call recording, voicemail, automated attendants, music on hold and call analytics. Since no custom hardware is required, you can have the system set up in minutes. Zadarma also offers user the ability to obtain virtual numbers in 80 different countries.
Zultys is an all-in-one IP business phone system that integrates voice, video, data and mobility. The company offers both cloud-based and on-premise phone systems. Zultys MXvirtual is a fully integrated unified communications solution and IP phone system that integrates voice, video, data, and mobility to optimize collaboration and communications for businesses of all sizes. The MX250 system is a feature-rich, enterprise-class business IP telephony system that supports high-quality VoIP and unified communications services for up to 250 users, while the MX-SE is an IP phone system that enables VoIP and unified communications services for up to 50 users in a smaller office or branch-location environment.
Dialpad offers voice calling, video conferencing and text messaging. This flexibility helps small businesses connect with clients in ways that work best for both customers and businesses. This VoIP service offers cost-effective plans and an easy-to-use mobile app.
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Nextiva is a cloud-based VoIP system that can spread across several offices and stores yet still be managed from one central platform. The phone system is extremely reliable, offers multiple service plans and includes top-notch customer support. Nextiva also has a wealth of valuable calling, collaboration, and mobile features and tools.
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