11 Best Phone Systems For Small Businesses In 2024

Your small business needs a proper communication platform to address the customer’s needs, provide high-quality support, contact leads and communicate internally. This is where the phone system plays an important role. But, the question is which one is the best, which is why we have brought the 11 best phone systems for small businesses in 2024.

11 Best Phone Systems For Small Businesses

Well selecting a cost-effective phone system is a crucial step that will guide the operations of your business and infrastructure. However, selecting the right one among a plethora of phone systems is a challenging task.

Therefore, in this guide, we’ll discuss important factors required to consider while selecting a phone system, types of phone systems, and the cost associated with it.


What Is A Business Phone System?

A Business Phone System is a communication platform that includes unlimited calling, calling multiple employees simultaneously, automated menus, voicemail-to-email functionality, and call recordings.

There are various types of phone systems, such as Voice over Internat Protocol (VoIP), Key System Unit (KSU), and Private Brand Exchange (PBX). The best type of phone system uses VoIP technology. It helps small businesses to use the business internet connection for the whole system.


How To Choose A Business Phone System?

How To Choose A Business Phone System

Business Phone System is an essential part of any small business as it helps to communicate with tech customers and address their needs. However, selecting the right phone system can be overwhelming, with many factors to consider.

So, here are a few tips on how you can choose the right business phone system for your small business:

1. Determine The Needs Of Your Business

Before you begin the process of buying a new phone system, it is essential to assess the needs of your business. For this, you need to consider the size of your business and the number of remote and in-office employees in the location and system.

Also, evaluate how soon you need your system to be set up and running. These time constraints will help you narrow down the options available in the market.

2. Research The Market

The next step is to research the business phone system and shortlist the suitable providers. You can check out all the best options listed in this article.

This will help you get an idea of the offering of the various business phone systems, how they differ from each other and which one is suitable for your business.

3. Experiment With The Systems And Free Trials

Many business phone system providers offer a free trial and demo that gives you a broad idea about the platform.

These demos and free trials are an excellent way to sample the service without making any investment or commitment. You can opt for free trials and demos with a few suppliers of the service and compare the various features and customer service efforts.

4. Get Quotes

After the free trials and demos, request quotes from the top choices to compare the prices. Many suppliers will offer a discount for an annual subscription, while many will charge additional fees for extra features. These extra features include business phone numbers or extensions.

Hence, after comparing the prices of your top consideration decide which one is suitable for your small business and the budget.

5. Read Customer Reviews

The next step is to read the customer reviews online. This will help you provide valuable insight into which phone system is best suited for you.

Reviews give you honest information about the company and its services that you might not find anywhere else.

Additionally, while reading the reviews, focus on the frequently mentioned issues and concerns. Don’t opt for a supplier with a bad reputation, no matter how well the company markets itself.


What Are The Types Of Business Phone Systems?

The most common types of business phone systems are listed below:

1. Virtual Phone System

Virtual Phone Systems are extensive call-forwarding solutions. This means that when a customer calls the main business phone number, the call is transferred to the employee’s cell or home phone instead of a desk phone.

This system includes features like automated receptionists, voicemail, call forwarding, call screening, and online faxing.

The only con of the virtual phone systems is that they aren’t full-fledged phone systems. The calls are charged on this system and use your mobile or home phone minutes.

2. Landline System

Landline Systems are traditional phone systems, which are also known as public switched telephone networks.

These are like analog systems that are run by the telephone company’s traditional copper wire. For this, you need on-premises Private Branch Exchange (PBX) to run the hardware. This hardware creates multiple extensions and provides phone system features like call forwarding and call directories.

Landline systems are a reliable and time-tested solution, but the challenging maintenance is making many customers move away from this system. Hence, it’s only a matter of time before these landline systems disappear.

3. VoIP Phone System

VoIP systems are easy to set up and configure and come with a sophisticated phone system with bells and whistles.

It uses an internet connection for the business instead of copper wires used in landline systems. VoIP system provides a feature that only large corporations using expensive PBX hardware could access.

The only drawback of this system is that it uses an internet connection. So, if your small business is located in a spotty internet service, then this type of connection is not the best option.

4. On-premise VoIP System

On-premises VoIP system requires a significant capital expenditure as you purchase the equipements upfront. This system comes equipped with all the equipment, including PBX hardware.

But unlike a self-hosted system where you pay one-time fees for all the hardware, with an on-premise VoIP system, you are required to pay a monthly fee for Session Initiation Protocol Trunking or primary rate interface circuit.


11 Best Phone Systems For Small Business

Ther are over 100 business phone systems available in the market but we have listed down our top 11 picks of phone systems.

1. Nextiva

Nextiva combines business phone system, texting, team chat, customer service tools, routing and many business friendly features with desktop and mobile app.

The phone system allows its users to easily access features like meeting rooms, thread conversations, file sharing, unlimited calling in the U.S and Canada and a multi level auto attendant.

Nextiva includes:

  • Built-in contact management
  • Calendering system along with VoIP
  • Video Conferencing
  • SMS and
  • Internal Team Messaging

Types of phone systems offered by Nextiva:

  • Yealink T-series (4-16 lines)
  • Poly Edge series
  • Poly CCX 500 (24 lines, color touch screen)
  • Poly VVX Series
  • Nextiva X885
  • Nextiva X835
  • Cisco IP Phones (4-10 lines)
  • Nextiva X815

Pricing:

Nextiva pricing ranges from $18.95 to $32.95 per line per month. However, this pricing is only available for users who sign for multi-year agreement. The supplier also offer a 30-day free trial and three paid plans.

PlansPricing What It Includes
Essential $18.95/user/monthUnlimited voice & video calling
Voicemail
Toll free number
Unlimited internet fax
Google contact integrations
Professional $22.95/user/monthEverything in Essential plus:
Unlimited conference call, 40 participants
Unlimited video conferencing
Screen sharing
Mobile and Desktop SMS/MMS
Salesforce/ Hubspot integration
Enterprise$32.95/user/monthEverything in Professional plus:
Call recording
Single sign on
Unlimited video conferencing recording
Voicemail transcription

Pros & Cons Of Nextiva

ProsCons
Well-rounded cloud phone systemNot enough integrations
User-friendly app for calling on any deviceLack helpful collaboration features like breakout rooms and whiteboards
Provides a dedicated local number and extension for each userDelayed mobile app notifications

2. Zoom Phone

Zoom Phone is a complete VoIP phone system which includes team chat, call monitoring, call queues, IVR and call analytics on each plan. Th platform offers the option of per minute payment or the offer of unlimited domestic calling in countries outside U.S.

The team chat conversation of the system supports emoji reactions and file sharing and the desktop and the mobile apps are easily negotiable.

Zoom Phones Options

  • Poly VVX (4-12 lines, $5.99-$7.99 per month)
  • Audio Codes (2-8 lines, LCD sidecar display, $4.99-$14.99 per month)
  • Poly CCX Series ($40-$45 per month, mini camera)

Pricing:

Zoom phone also offers 3 pricing plans which includes same features but differ according to the domestic calling area and call pricing style. The plan ranges from $10-$20 monthly. It also offers unlimited calling in up to 19 countries.

PlansPricing What It Includes
US & Canada Metered
(Pay as you go)
$10/user/month
+ Additional fees for outbound calls
Unlimited Internal calling
Outbound calling
One management portal
Domestic SMS/MMS
US & Canada number
Multiple device use
US & Canada Unlimited
(Unlimited Regional Calling)
$15/user/month
+ Additional fees for international calls
Unlimited Internal calling
Outbound calling
One management portal
Domestic SMS/MMS
US & Canada number
Multiple device use
Unlimityed calling to 19 countries
Global Select
(Unlimited regional calling in one of the 48 countries and territories)
$20/user/monthUnlimited Internal calling
Outbound calling
One management portal
Domestic SMS/MMS
US & Canada number
Multiple device use
Unlimityed calling to 19 countries
Direct Dial Number

Pros & Cons Of Zoom Phone

ProsCons
Cohensiveness across various channelsNo feature flexibility
Domestic calling outside the U.S.Lack of analytics
Easy to manage

3. RingCentral

RingCentral is a business communication platform that is available on both desktop and mobile. Its app supports multi-level IVR, call monitoring, call queues and various business phone numbers.

The app also comes with cloud messaging, AI video communication and a VoIP phone system. The app is quite affordable with unlimited team collaboration rooms that includes file sharing and task management.

RingCentral Phone Options:

  • Poly CCX Series (1 line)
  • Mitel 6940w (48 lines, 7″ color display)
  • Poly Edge (up to 66 lines)
  • Yealink T Series (4-16 lines, color display, Wi-fi, Bluetooth)
  • Avaya J series
  • Cisco 8861
  • Unify CP Series (9 lines, 3.5” color display)

Pricing:

RingCentral offers 3 plans ranging from $20-$35 monthly per user if subscribed annually. The month to month subscription ranges from $30-$45 per user per month and is quite expensive. It also offers a 14-day free trial.

PlansPricing What It Includes
Core$20/user/month
+ paid annually
Unlimited domestic calling
IVR
SMS & MMS
Access to APIs
Single Sign on
HD video and audio conferencing
Advanced $25/user/month
+ paid annually
Everything in core plus:
Auto call recording
Advanced call monitoring and handling
Multisite management
Internet Fax
Acces to Salefore and 300+ apps
Essential business analytics
Ultra $35/user/month
+ paid annually
Everything in Advance plus:
Unlimited video, whiteboard, messaging
Customizable business insights
Unlimited file sharing
Unlimited storage for files and recording
Enhanced business analytic suite with expanded storage

Pros & Cons Of RingCentral

ProsCons
Built-in collaboration featurePoor customer service
Easy to useLimited SMS
Excellent business analytics Overwhelming analytics page

4. Vonage

Vonage is a phone system that offers desktop and mobile app with VoIP calling, video meeting, SMS and team chat. You can make unlimited calls and text within the US, Canada and Mexico.

It offers excellent virual numbers with plenty of toll-free and local options from across the North America and otehr counties too.

Vonage Phone Options:

  • Poly VVX 250 (4 lines)
  • Yealink T57W (16 lines, multipoint touch screen, 29 touch keys)
  • Polycom VVX 250
  • Yealink SIP T48U (16 lines, 7″ color backlit display)
  • Poly CCX 600

Pricing:

Vonage offers 3 pricing plans ranging from $19.99 to $34.99 per user per month. They also ofefer seaonal discounts.

PlansPricing What It Includes
Mobile $13.99/user/per extension
+ 3.50 fee/per number + taxes
Unlimited domestic calling
SMS & MMS
Supports mobile app and desktop
Premium $20.99/user/per extension
+ 3.50 fee/per number + taxes
Everything in mobile plus:
Unlimited video calling (upto 200 paticipants)
Virtual receptionist
Integration with business apps
Analytics & reporting
Supports VoIP desk phones
Advanced $27.99/user/per extension
+ 3.50 fee/per number + taxes
Everything in premium plus:
Single Sign-on
On demand call recording (15 hours per month)
Call group
Voice mai transcription

Pros & Cons Of Vonage

ProsCons
Phone number availabilityLacks advanced features
Esay meeting setup, logs and usageNeed to pay extra for call recording
Unlimited SMSoverpriced key features

5. Ooma Office

Ooma office is UCaaS platform and phone system for small business which supports VoIP callign across Mexico, and North America. It offer video calling with upto 25 participants.

However, the video meeting includes only basic features and lacks some useful features like call monitoring, and AI Support tools.

Ooma Office Phone Options:

  • Ooma 2603
  • Ooma 2613
  • Ooma 2615W
  • Yealink T33G

Pricing:

Ooma phone system offers 3 plans ranging from $19.95 to $29.95 monthly per user. The Essential plan offer unlimited calling across North America and Mexico along with IVR nad ring support.

PlansPricing What It Includes
Essential $19.95/user/month
50+ standard features
Ring groups
Music on hold
Virtual receptionist
One Toll-free number
Digital Fax
Mobile App
Pro$24.95/user/monthEverything in Essential plus:
Desktop apps
Call recording
Text messaging
Google and office 365 integration
Call analytics
Pro Plus$29.95/user/monthEverything in pro plus:
Call Queuing
Salesforce integration
Advanced Call management
Hot desking
Oooma meetong recordings

Pros & Cons Of Ooma Office

ProsCons
Simple call controlNo team chat
Multi channel analytics Basic video calling

6. Grasshopper

Grasshopper is a simple phone system that comes with only calling and SMS feature. It’s a great option for solopreneurs and small teams that doesn’t need a phone system with bells and whistles.

The desktop and mobile interface of the phone system includes vopicemail, call logs, messaging history conversation and basis call control.

Pricing:

PlansPricing What It Includes
True Solo$14/ month billed annually1 Users
1 Phone numbers
1 Extensions
Solo Plus$28/ month billed annuallyUnlimited Users
1 Phone numbers
3 Extensions
Partner $40/ month billed annuallyUnlimited Users
3 Phone numbers
6 Extensions
Small Business$80/ month billed annuallyUnlimited Users
5 Phone numbers
Unlimited Extensions

Pros & Cons Of Grasshopper

ProsCons
Simplest phone system Lack routing features
Unique pricing structureNo hardware/hardphones
Unfavourable pricing structure

7. Go To Connect

Go To Conneect phone system comes with cloud based voice, video and chat messaging. It’s basic plan offer limited access to the routing tools. On the other hand, its standard plan supports unlimited VoIP calling to over countries including China, UK, Australia, and many other popular countries.

Go To Connect Phone Options:

  • Cisco 8861 (10 lines, 5″WVGA screen)
  • Polycom VVX 601 (16 lines, built-in Bluetooth, touchscreen)
  • Yealink T57W (16 lines, built-in Bluetooth)

Pricing:

PlansPricing What It Includes
Basic$27/user/month
Simplified business phone system with basic meeting features
Standard $32/user/month
Fully-featured phone, chat and video conferencing system

Pros & Cons Of Go To Connect

ProsCons
Hihg-volume international callingLimited basic plan
Phone system customization Limited SMS
Excellent dial plan builder

8. Dialpad

Dialpad is a business phone system that comes with specialized AI feature for small teams and offers team collaborations. It also comes with the most user-friendly dashboard, real-time analytics and live call transcriptions for each plans.

Moreover, the business phone system includes voice and video calling, virtual faxing, team chat and SMS texting. Hence, Dialpad phone system includes all the necessary features like multi IVR, call queues, virtual phone numbers for around the globe and file sharing in the team chat.

Dialpad Phone Options:

  • Polycom VVX 350 (6 lines, 4 soft keys, 3.5″ color backlit display)
  • Yealink SIP T33G (4 lines, 2.4″ color backlit display)
  • Yealink SIP T54W (16 lines, built in Bluetooth)

Pricing:

PlansPricing What It Includes
Standard$15/user/month
If billed monthly- $23
Unlimited domestic calling
IVR
SMS & MMS
Access to APIs
Single Sign on
HD video and audio conferencing
Pro$25/user/month
If billed monthly- $23
Everything in standard, plus:
10 Office locations
Local number support in 70+ countries.
EnterpriseContact the company for pricing detailsEverything in pro, plus:
Data retention policies
Priority live agent support
Dial-by -extension
Unlimited ring groups
100% uptime
Unlimited

Pros & Cons Of Dialpad

ProsCons
Have advanced feature for less priceSmall video capacity
Easy analytics and AI Limited integration
Excellent user experience

9. OpenPhone

OpenPhone is a basic phone system with voice calling and texting. The platform is user-friendly, with unique number-sharing tools, but doesn’t offer a video call feature.

However,mMultiple users can make calls and send messages from the same number simultaneously. It has recently added AI features and a call summaries feature.

Pricing:

PlansPricing What It Includes
Starter$15/per user/month
Annually- $180
Voicemail Transcripts
Calling & Messaging to US and Canadian numbers
One new local or toll-free phone number users
Business$20/per user/month
Annually- $276
Everything in Starter, plus:
Call transfers
Auto call recording
Phone menus
Integration with Hubspot and Salesforce
Custom Ring Orders
Group calling
EnterpriseContact the company for pricing details Everything in Business, plus:
Custom contract and pricing
Audit log
Priority Support
Dedicated Account manager

Pros & Cons Of OpenPhone

ProsCons
Shared Phone numbersLack of analytics
Integrated with AILimited Google Interactions
No hardware/ hardphones

10. 8×8

8×8 offers unlimited global and local access to up to 48 countries, SMS team chat, and video meetings. It’s a great option for team that scale customer service. This is due to its UCaaS plans that transition smoothly into its higher-tier contact center plans.

8×8 Phone Options:

  • Poly Edge E400 (14 lines, AI-powered noise block)
  • Yealink SIP T46U (10 Lines, soft keys)
  • Polycom VVX 350 (6 lines, 3.5″ color display)

Pricing:

8×8 have total of 5 plans, 2 of which are unified communication plans and 3 contact center plans. However, you need to contact them for more pricing details.

PlansPricing What It Includes
X2 $24/user/monthUnlimited Calling to 14 countries
HD video and audio conferencing for up to 500 active participants
SMS, MMS, and team chat
Unlimited users
X4 Plan $44/user/monthEverything in X2 plus:
8×8 Front desk for receptionists and operators
Unlimited calling to 48 countries
Supervisor analytics
Monitor, whisper, and barge
X6$85/user/monthEverything in X4 plus:
IVR
Call recording CRM
Reporting & Analytics
CX Journey mapping
X7$110/user/monthEverything in X6 plus:
Multi-channel support for social media, chat, email, and SMS
Co-browsing
X8$185/user/monthEverything in X7 plus:
Quality management
Speech and text analytics

Pros & Cons Of 8×8

ProsCons
Supervisor SupportLimited International calling
Receptionist support Hihger price point
Large capacity meetings

11. Google Voice

Google Voice offer a VoIP phone system that included texting, rouiting features that are accesible via mobile and web apps. In Googke boce you can choose a phone number throught the United States. You can access basic features like call control, multi-level IVR, ring groups and usage reporting.

It is a great option for companies utilize Google as a part of daily workflows as it offers seamless inttegration with the Google interface.

Google Voice Phone Options:

  • Poly Edge B10, B20, B30 (2-4 lines
  • Poly OBi 300 and 302 (1-line VoIP adaptor)
  • Poly VVX 450

Pricing:

User & Location Starter
$10/user/month
Standard
$20/user/month
Premier
$30/user/month
Number of usersupto 10UnlimitedUnlimited
Regional Location None UnlimitedUnlimited
Domestic Location upto 10UnlimitedUnlimited
International Locations None None Unlimited

Pros & Cons Of Google Voice

ProsCons
Cheapest option as compared to its competitorsNo-toll free numbers
Unlimited textingLack of hardware support
Google integrationLack of integration with other key platforms


How Much Does A Business Phone System Cost?

Business phone systems are more cost-effective than many people think. On average, the cost of a phone system is $15 for a barebone plan, and for an enterprise, it costs around $35 per month.

But the cost of the phone system also depends on the type of phone and the functions you want in the phone to run your business effectively.

Cost By Type Of Phones

1. Analog Phones

In analog phones, the voice signals are transferred over copper cables through a series of actual switch boxes to link calls between two phones.

The price of an analog phone system is determined by the size of the company and the services needed.

The cost of an analog system for a firm that uses PBX ranges between $500 and $2,000 per user, depending on the size of the system and the installation needed.

2. Hosted VoIP Phones

The cost of VoIP phones is determined by factors such as the number of users, the number of extensions, and the additional features required by your small business.

Depending on the VoIP supplier, discounts are also offered for bigger teams, and reductions are also granted for yearly payments as compared to monthly subscriptions.

Also, additional features like text message support, app and cloud connectivity, conferencing, and personalized greetings might raise the monthly prices.

On average, the installation cost of VoIP phones is around $4,450. This covers power source, router, phone and provincing.

Moreover, the expenses of VoIP phones range from $10-$60 per user per month. The amount you finally pay is determined by the number of services you want in addition to the base services like call forwarding, call waiting, basic teleconferencing, and business SMS.

3. Key Phones System

This system uses a central device to manage many lines and extensions. A typical key phone system has all the functions that are required by a business, including hold, intercom, music-on-hold, memory dialing, paging, speakerphone, and more.

The key phone system is a suitable option for a small business. This system costs $3,000 to install, $1,700 to set up, and $600 to maintain on a monthly basis. The annual maintenance price of the key phone system is $6,600.

Moreover, a core system unit that handles 6 lines and 16 extensions costs between $400-$500. The cost of 8 lines and 24 extensions costs $500-$1,000, depending on the features you have selected.


What Factors Affect The Cost Of Phone Systems For Small Businesses?

The cost of a phone system for small businesses is determined on the basis of various factors. For example, the average cost of a VoIP phone costs $10-$60 per month per user.

Here are some of the factors that affect the cost of phone systems for small businesses:

1. Number Of Users

Most plans have pricing based on per user. So, you have to decide whether every employee needs a phone line or you can set up one line for every employee.

Also, consider how many customers you connect with, the frequency of calls, and whom they reach. Many providers also offer volume discounts, which means the more users you add, the lower the price per user will be.

2. Training Costs

Training cost is often overlooked when budgeting for a new phone system but is also a key factor in determining the cost. A new phone system will require some form of staff education, and this cost depends on the number of employees that need training.

The cost also depends on the location, as different locations have different costs. Therefore, when determining the budget, also calculate the training cost of the employees.

3. Features Required

You need to list the features that are required by your small business. Companies can use basic phone service packages to make and receive local and long-distance calls. However, the add-on services boost the productivity and cooperation in the business.

These add-on services will easily improve customer and staff satisfaction, but it also means a higher price tag.

4. Phone Model

Not all phone systems are created equally. So, you have to decide what important features you need and then select a suitable phone model.

Based on the business phone model, the following features may or may not be included in your phone system:

  • Intercom
  • Automatic call-back
  • Speed Dial
  • 3-way calling
  • Call waiting
  • Call transfer
  • Call recording
  • Conference Calling
  • Call Logs

Conclusion

So, overall “11 Best Phone System For Small Business In 2024” gives you every information on the best phone systems that you can buy for your small business. However, you need to consider the need of your business as well as the needs of your customers.

Additionally, it’s worth noting that instead of using traditional handsets, you can also use software-based phones (Softphones). This will help you save a lot of money.

But along with phone system a small business owner also needs to ensure that he/she has every thing that is essential for the business like credit card machines. Therfore, you need to look into every aspect of your business.


FAQs

How much does an offline landline cost?

Basic landline service without an internet connection costs around $15 to $40 per month per line.

Does companies require desk phones?

No, after installing the virtual telecommunication, no help desks are required in the companies.

Is VoIP cheaper than landline?

VoIP phone systems are cheaper than landlines. They cost less than 50% of what a landline costs. This is because they operate on an internet connection instead of copper wires.

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