Key Systems vs. PBX: Breaking Down Small Business Phone Options

You’ll also have to give some thought to want functions and features your business might need as it grows. Cost might drive your decision making process, but keep in mind that saving money on your phone system today may mean losing money in the long run.

The bottom line is investing in a phone system for your small business or startup is an important move, but choosing which phone system best suits your company’s priorities is a time consuming and confusing task. That’s why we’ve put together this quick tutorial. Read on and we’ll give you the scoop on two of the most popular phone system solutions, Key and PBX.

A Key System is a traditional and basic type of business phone system that works well for companies with a few dozen employees or less. A Key System is controlled and supported by a Key System Unit (KSU) that offers multiple lines.

Key System telephones have multiple buttons that represent individual lines. When you want to make a call, you pick up the receiver and press a button to access a phone line. The button then lights up to indicate that the phone line is in use. When compared to a PBX system, Key Systems aren’t as customizable, but they do offer an array of features a traditional phone system can’t. In fact, a Key System offers every basic calling feature most small businesses need, such as hold buttons, speakerphone, paging, intercom, memory dialing, timers and long-distance restriction capabilities. With a Key System you can also call extensions within your office.

You can expect that largest initial cost associated with a Key System is the purchase of new handsets. A Key System may be compatible with your current phone wiring, which can save you substantial money. The KSU must be installed and maintained by a professional and all external phone lines will need to be connected to it.

A PBX system connects the telephones within a company to one another and also connects them to the public switched telephone network (PSTN). It’s a private telephone network where employees share a limited number of outside lines (often referred to as trunk lines) to make and receive calls outside of the business. In essence, you can think of PBX as functioning like a mini version of the phone company’s central office (CO).

Once you break down all the pros and cons, you’ll discover that neither system is truly “better” than the other. The truth is, both Key Systems and PBX systems have something to offer small businesses. It’s up to you select the one that best fulfills your company’s needs.

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.