The Best Small-Business Phone Systems

Types of small-business phone systems

It’s easy to think a phone is a phone is a phone. But in today’s technological communications landscape, it’s likely that even Alexander Graham Bell would be overwhelmed. To help cut through some of the clutter, here’s a breakdown of the most common types of small-business phone systems.

Traditional

This is the one our friend Alexander would be most familiar with. Traditional phone systems use a phone jack (that’s usually in the wall) to connect the phone to a phone service, and the phone sits on your desk ready for action. In small business, traditional phone systems are also called PBX (private branch exchange) phone systems.

PBX phone hardware can come with single or multiple lines and typically use a customary handset. Most also have options to add a headset. And if you get hosted PBX, you’ll have the same flexibility as VoIP. If you want a hosted or virtual PBX phone system, make sure you pick the right hardware. It doesn’t work with an analog phone line, as it needs to connect to the phone provider using an IP (Internet Protocol) network.

VoIP

Voice over Internet Protocol (VoIP) phone systems are the most common telephone systems used in business today. VoIP systems share a lot of features with traditional PBX phone systems, but they come in at a lot cheaper prices. VoIP refers to the way calls are made—using a high-speed internet connection instead of a conventional phone line. You can also use a business VoIP system with customary hardware or opt to answer calls using computers, which saves you the cost and hassle of installing phones.

Even though VoIP phone systems can be a good choice for any business, they’re our favorite for smaller businesses because of how flexible they are. With IP phones, it’s easy to add new users and expand features as your business grows. It’s also easy to downsize, if needed. And the overall cost for smaller operations is more affordable with VoIP service.

Virtual

Virtual sounds like something from the future, but it’s actually an updated version of traditional PBX systems. A virtual phone system uses cloud technology and works well with mobile phones. That makes it ideal for businesses that need to keep employees connected to customers on the go.

But virtual doesn’t mean “mobile only.” You can have a cloud-based phone system that works with traditional handsets, computers, or mobile phones. Because virtual phone systems are so versatile, it’s important to have a clear picture of what you need—and what you don’t. Small-business owners can get dazzled by the features and flexibility and end up taking on more than they need in a virtual phone system.

The best small-business phone systems

We’ve grouped the best phone system solutions for small businesses based on business needs. Our top picks are below.

Best for home-based small businesses

Running a small business from your home comes with unique challenges. You often end up balancing household and family needs with the demands of your business. But the right phone system can help with the balancing act. These home office phones are packed with features for your business plus extras that make working from home easier. Things like cordless phones, noise reduction, cell phone sync, speakerphones, and conferencing make it easier for you to juggle the demands of a home-based business without missing a call.

Panasonic 2-Handset Landline Telephone

AT&T 2-Line Corded Telephone

Best for small businesses on a budget

Making your dreams a reality takes a lot of blood, sweat, tears—and money. We know that many small businesses have to watch every penny. But being budget-conscious doesn’t mean you have to skimp on quality or features. We like these small-business phone system solutions because they deliver reliable performance without draining your business bank account or sacrificing a reputable brand name. Both of our top picks come in under $100 per phone.

Cisco SPA 303 3-Line IP Phone

Yealink SIP T23G Professional Gigabit IP Phone

Best for customer service and sales businesses

Reputation is everything when you’re running a small business, so you need a phone system that helps you take care of customers quickly, smoothly, and dependably. You may need hands-free operation, multi-line phones, and a digital answering system to keep your customers happy instead of frustrated. We’ve picked the phone systems below because of their multiple features designed to support a customer service or sales environment.

Mitel 5330e IP Phone

Panasonic Small Office Business Phone System

Best for expanding your small business

When your small business is growing, it can be hard to scale equipment and services to meet fluctuating needs. Whether you currently have one employee or ten, being able to move quickly when your business changes is crucial to successful expansion. That’s why the phone systems we recommend for expanding businesses work for both small and medium-sized businesses. Best of all, they can expand with your business. We looked for systems that are adaptable, compatible, and—most of all—affordable.

RCA ViSys 4-Line Expandable System

Avaya IP Office Phone System

Best for small businesses with remote workers

These days you don’t even need a dedicated office to operate a small business. Many businesses and startups rely on remote workers. This can mean that you bring on the best employees no matter where they live—or that your team is on the go and needs to stay connected during and between client meetings. You may also be dealing with some workers that use desk phones and others that use mobile phones. We’ve found the best communications tools to make collaborating easier no matter how your remote office works.

Polycom SoundStation2 Expandable Conference Phone

Logitech P710e Mobile Conferencing Speakerphone

The Takeaway

You are a business owner, and that means you’re the master of your own destiny. You should also be the master of your phone system. Don’t let a provider dictate (and limit) your small-business phone system options. Find the phone that works for you and then match it with a provider. We’ve put our research and expertise to work for you to save you the headache of sorting through all the options. Use this guide to help navigate the phone system waters—and once you’ve found what you like, we’re here to help you figure out the best business VoIP providers too.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Sources

1. Invoca, “Call Intelligence Index ʼ16”