The best phone systems for small businesses use Voice over Internet Protocol (VoIP) technology to turn internet-connected devices into communication hubs. These affordable VoIP solutions offer scalable plans, advanced features, and flexibility for mobile workforces.
See below for our list of the top small business phone systems and compare key features, capabilities, and pricing. Check out the buyer's guide to learn what to look for in unified communications platforms and which tools can support your company as it grows.
Guide to business phone systems
Business VoIP phone systems can improve customer interactions, increase productivity, and save your company money. According to Fortune Business Insights, "businesses that use unified communications solutions are able to boost productivity by 20% to 25%."
By evaluating the benefits of VoIP platforms and understanding how they differ, you can select the right tools and services for your team. Explore the following buyer's guide to choose the best small business phone system for your company, including information about VoIP features, hardware requirements, costs, and setup tips.
What to look for in unified communications for a small business
For small business owners managing multiple roles, a unified communications platform isn't just a convenience, it's a competitive advantage. Unified communications as a service (UCaaS) brings voice, video, messaging, and collaboration tools into one application for organized conversations and less app switching. Look for a user-friendly small business phone service with core features and integrations that can scale as your company grows.
Must-have features in small business phone systems
The best phone systems for small businesses solve everyday communication problems, like missed calls or long wait times. Employees can see which team members are available, flip calls between devices, or send files from VoIP softphone apps.
Although VoIP providers advertise dozens or hundreds of features, your company may not need or use every tool. When comparing small business phone services, focus on the features that impact daily interactions and make sure they work seamlessly.
Here are the essential VoIP features to look for when choosing a business phone system:
- Visual voicemail: View or listen to messages from your email, mobile app, or softphone. See if the provider offers searchable archives and if you can tag or forward messages.
- Call forwarding: Route incoming calls to your mobile device, a backup line, or a coworker when you're unavailable. Look for customizable call forwarding rules like time-of-day routing, forward when busy, and simultaneous ring settings.
- Auto attendants: Automatically greet callers and route them to the right person or department. Choose systems with drag-and-drop call flow builders and flexible call routing options, including multilevel menus, interactive voice response systems, and business hour schedules.
- Call management tools: Manage high call volumes and enhance the caller experience with ring groups, hold music, call flip (switching devices mid-call), and call queues. Look for one-click call transfers and customizable hold music or messages.
- Mobile apps and softphones: Let employees use their laptops, tablets, or smartphones as business phones. Ensure that mobile apps match the desktop experience and have robust security features like two-factor authentication (2FA) or remote wipe.
- Call logs and basic analytics: Track call volume, duration, and user activity. Consider VoIP phone systems that provide easy-to-read reports for visualizing peak calling times and offer scheduling options.
- Video conferencing: Meet with teams, job applicants, or clients using your business phone system. Check for features like waiting rooms, screen-sharing, whiteboards, meeting recording, and breakout rooms.
- Team chat: Use built-in instant messaging tools for one-on-one, team, and companywide conversations. Look for threaded discussions, file sharing, companywide channels, and @mentions.
- Text messaging: Send and receive business SMS/MMS from company numbers. See if messaging limits are pooled or per-user and confirm that the system is registered with The Campaign Registry (TCR) for compliant A2P texting.
Advanced VoIP features that scale with your small business
Your small company may look very different a year or two from now, so your business communications tools should scale with you, not slow you down.
Consider VoIP solutions for SMBs that offer:
- Tools powered by artificial intelligence: AI-enabled phone systems help employees find information faster and use conversation data more effectively. AI features like real-time transcription, call summaries, voicemail prioritization, and sentiment analysis can benefit businesses.
- An admin dashboard: The best small business phone systems let you add or remove users, assign numbers, and adjust call flows through a streamlined admin portal.
- Scalable VoIP plans: Cloud phone services may let you mix and match licenses and offer subscriptions with advanced features for sales and customer service teams.
- Global support: Some business VoIP systems offer international phone numbers and customer support for companies wanting to establish a virtual presence overseas or add a global workforce.
Essential VoIP integrations for small business software
Cloud-based phone systems are all-in-one business communication solutions, and integrating them with core platforms is like a power-up for teams. Look for small business VoIP solutions that connect to email, calendars, and contact management tools, like Google Workspace or Microsoft 365. These VoIP integrations let teams schedule meetings and access contact details across devices.
Many small business phone services offer contact and calendar integrations on base plans. However, you might need a higher-tier subscription to connect your phone software to customer relationship management (CRM) or help desk tools.
When comparing office phone systems, look for:
- VoIP integrations with bidirectional sync so that call logs, contacts, and notes update automatically in both systems.
- Native integrations rather than third-party connectors, like Zapier or Make, as these external services might cost extra.
- One-click installations and beginner-friendly knowledge base tutorials unless you are familiar with APIs.
Hidden fees in VoIP services can lead to surprises when the bill arrives. Before signing up for a small business phone service, look for information that explains the vendor's billing statements and find rate details for add-ons, overages, and international calls.
How much does a phone system plan cost?
The cost of a VoIP phone system for small businesses typically ranges from $10 to $75 per user per month, depending on features and contract terms. Most providers charge per license, which covers one user needing a direct number, voicemail, or softphone or mobile app access. You can often find discounts for annual billing or multiyear contracts.
At the lower end, for about $20 to $35 per license monthly, you can get unlimited domestic calling, an automated attendant, and standard call management tools. Base or some midtier VoIP subscriptions often fall in this price range and suit many small businesses. Higher-priced packages add call monitoring, CRM integrations, and AI-powered features.
Understanding VoIP licensing and user costs
Business VoIP pricing is structured differently from traditional telephone systems. With landlines, companies pay per phone line, and each line supports one active call at a time. Small business VoIP solutions use a per-user licensing model. Each license or "seat" provides access to a full communications suite with voice, video, and SMS. Unlike a landline, a single VoIP license can handle multiple concurrent calls.
However, some companies won't need to assign licenses to all team members. For example, if a restaurant has one main number ringing to two phones, only one license may be required. If both phones are in use, the auto attendant can route callers to voicemail or call queues.
Common business phone system fees and add-ons
Hidden fees in VoIP services can lead to surprises when the bill arrives. Before signing up for a small business phone service, look for information that explains the vendor's billing statements and find rate details for add-ons, overages, and international calls.
Other VoIP phone costs may include:
- Phone setup fees: These are less common with top-rated business phone services, and many waive setup fees during promotions or with annual contracts.
- SMS registration: To use SMS with your VoIP phone system, you must register through TCR. There is a one-time fee for creating your "brand" and setup fees for each campaign, including routine business communications like appointment reminders.
- SMS monthly fees: VoIP providers may charge around $1.50 per month per campaign for TCR-compliant SMS messaging. These are separate from your standard business text messaging costs.
- Toll-free numbers and minutes: A few VoIP plans include toll-free numbers or minutes; otherwise, this is an add-on fee. Inbound calls to toll-free numbers cost extra; these are not included in your plan's unlimited U.S. calling feature.
- Virtual faxing (e-fax): If the business phone service doesn't provide virtual faxing with subscriptions, you must pay for a separate fax line. This is usually a monthly add-on fee for each additional line.
- Overage charges: Toll-free minutes, international calls, and text messages can trigger overage fees. Many vendors let businesses set limits or lock features to prevent excessive use. Check provider policies to avoid surprises.
- International calling: Most VoIP providers charge per-minute rates for international calls. Some offer unlimited global calling with premium tiers or as an add-on.
- Number porting fees: If you have an existing business phone number and want to transfer it to your new VoIP service, see if your provider charges a porting fee. Most do this for free, but some charge up to $50 per number.
- Early termination fees: If you enter into a contract or lease phone equipment from the vendor, canceling your agreement early can result in hefty fees. Review the fine print before finalizing your contract.
- Regulatory recovery fees and E911 charges: Telephone systems may be subject to state sales taxes, emergency services access, surcharges, and Federal Communications Commission fees, which add $1 to $10 per user monthly.
Phone system hardware and equipment for small businesses
Your company's VoIP hardware setup depends on your call volume and team size. Plus, you'll want to factor in how your staff works, whether at desks, in a retail environment, or on the move. This section outlines VoIP call quality requirements and phone equipment options.
Essential hardware for VoIP phone systems
Cloud-based phone systems for SMBs only need an internet connection and a connected device to make and receive calls. However, for optimal results and fewer headaches, confirm that your small business phone setup has enough capacity, meets your staff's needs, and can operate during a power outage.
So, what hardware is needed for a VoIP phone system? To set up a VoIP phone system, most small businesses need:
- Reliable internet: You need stable upload speeds for clear, uninterrupted calls. A 100 Mbps download/10 Mbps upload plan supports dozens of standard voice calls, but high-definition voice or simultaneous video meetings reduce capacity. Before deploying VoIP services, test your internet speeds and use the provider's bandwidth calculator to assess your needs.
- VoIP phones or adapters: Use VoIP desk phones or connect analog devices via analog telephone adapters (ATAs) for a traditional setup. You can often use existing hardware, as many vendors support BYOD (bring your own device). Check the provider's compatibility lists to ensure your equipment works with their system.
- Router with quality of service (QoS): For clear calling without choppy or dropped calls, prioritize VoIP devices or ports on your router, or upgrade to a business model with QoS settings. This feature keeps bandwidth available for VoIP calls.
- USB or Bluetooth headsets: Employees who handle higher call volumes may prefer to use USB or Bluetooth headsets to hear better in noisy workplaces and keep their hands free.
- Power backup: While not a phone system requirement, it's a best practice to have an uninterruptible power supply if your business depends on phone service. Your modem, router, and desk phones plug into this device, keeping them running for a short time during power outages.
Choosing between desk phones and softphones
Softphones are apps that run on computers or smartphones and turn existing devices into fully functional business communication tools. VoIP softphones are often more cost-effective than physical desk phones and come with most business phone subscriptions.
Desk phones work well for fixed locations in high-traffic areas and are a better fit for retail shops and restaurants that want to keep business communications separate from payment and point-of-sale hardware. In addition to shared office spaces, reception desks and retail checkouts typically benefit from standard VoIP phones or analog hardware with ATA adapters.
Integrating mobile devices into your VoIP phone system
Mobile integration in business phone systems allows companies to offer flexible options to employees without compromising professional standards and policies. Most VoIP providers include mobile apps for iOS and Android devices with subscriptions, so there isn't an additional cost for staff that use phone services in the office, on cell phones, or at home.
This small business phone setup supports company-owned and BYOD devices, turning smartphones into communication hubs, and it allows teams to make and receive calls, join video meetings, and view contact details.
When integrating mobile devices into your VoIP phone system, consider the following:
- Review mobile app functionality to ensure employees can access the features and information they need to do their jobs.
- Look for business VoIP systems that provide role-based access controls and device management tools for secure communications.
- Update your employee phone policy for data security, including instructions for data protection, customer communication, and app usage.
- Consider requiring all employees to use 2FA for mobile access, even when using their personal devices for business communications.
How do you start using a business phone system?
The best phone systems for small businesses provide onboarding wizards and detailed training guides to get SMBs up to speed.
Follow these steps to choose and implement your small business phone system:
- Assess your business communication needs and phone system requirements. Look at your current call volume, staffing levels, and where teams work. Decide if you need CRM integrations, multisite call routing, or AI-driven tools.
- Select the right phone system provider. After comparing vendors and features, check out user feedback and professional reviews. Meet with VoIP providers to ask questions, demo software, or start free trials. Consider getting a monthly plan first to see if it's a good fit before committing to a longer contract.
- Prepare for business phone system implementation. Contact your phone system vendor to see what onboarding support is available and confirm your internet speeds and hardware setup. Have user access information and training guides ready for kickoff.
- Set aside employee training time for VoIP. Even beginner-friendly business phone systems have a slight learning curve, and you can help small teams quickly catch on by providing them with a quick tips sheet for the most-used features on softphones or desk phones and security best practices.
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