Having a business phone system with extensions can make a big difference for your company.
Whether you’re running a small business or managing a large team, these systems help you handle business calls better by making it easy to connect with your team, keep customers happy, and create a professional impression.
You can make your business phone system even better with extensions. An extension is a short number within a business phone system that helps route calls directly to specific people, teams, or departments.
Instead of dialing a full phone number, you can use a simple two- or three-digit code to connect with the person or group you need.
In this article, we’ll talk about the best business phone system with extensions available today. We’ll also go over their features, so you can make an informed decision on what system to go for.
What Are Business Phone Systems with Extensions?
A business phone system with extensions is pretty much what it sounds like. It’s a system that lets you route calls to specific people or departments using a short number (an extension) instead of a full phone number.
Think of it like this: If your company has one main phone number, extensions act as shortcuts to the individual lines behind it. For example:
- 101 for Sales
- 102 for Support
- 103 for Billing
Extensions make it easier for both employees and customers to connect with the right person quickly.
How Extensions Work
Here’s a quick breakdown of how extensions function:
- Call routing: When someone dials the main business number, they’re greeted by an automated system (auto-attendant). From there, they’re prompted to enter an extension to reach the correct person or department.
- Internal communication: Employees can use extensions to call each other within the same phone system, saving time and avoiding the need for full phone numbers.
- Flexibility across devices: Extensions work across different devices like desk phones, mobile phones, or apps on desktops.
What Do Extensions Offer You?
Switching to a business phone system with extensions can transform the way your team handles calls and communicates with customers. Here is what extensions can offer you:
Single-Digit Extensions
Single-digit extensions, often called menu options, are perfect for routing callers to specific departments like sales or support. For businesses with smaller teams, these extensions can also serve as direct-dial shortcuts to individual team members.
When combined with call menus and submenus, single-digit extensions offer multiple layers of options, ensuring callers are quickly directed to the right place.
For example, a menu might let a caller press “1” for sales or “2” for support, while a submenu provides more detailed options within those departments.
Multi-Digit Extensions
For businesses that require more flexibility, multi-digit extensions provide the solution. These are typically 3- or 4-digit direct-dial extensions that route callers directly to specific team members or departments.
Multi-digit extensions are highly versatile and can be configured in several ways. They can:
- Route calls to a single phone
- Ring multiple phones simultaneously
- Direct callers to automated messages or voicemail boxes
Best of all, multi-digit extensions can be unlimited, meaning you can add as many as your business requires. This scalability makes them ideal for growing teams or businesses with multiple departments.
Automated Messages
Extensions can also be used to provide callers with important information through automated messages. This feature allows businesses to share details like hours of operation, frequently asked questions, or special announcements without requiring live assistance.
Once the message is finished, callers can be routed back to the main menu, a specific team member, or another extension. This not only saves time but also ensures that customers can quickly access the information they need.
Voicemail Extensions
Voicemail extensions are another powerful feature. They let callers leave messages directly in specific mailboxes, ensuring that the right team member receives the message promptly.
With push notifications and voicemail-to-email options, your team can stay informed and respond quickly, even if they’re not at their desk. Separate voice mailboxes for each extension help organize messages and keep communication flowing smoothly.
Dial-by-Name Directories
A dial-by-name directory is a user-friendly way for callers to connect with the right person. Callers simply enter the first few letters of the team member’s name, and the system provides options to direct the call accordingly.
Even if you have multiple employees with the same name, submenus within the directory can guide callers to the right individual. This feature makes your business feel more professional and eliminates the guesswork for customers.
Recommended Reading:
6 Helpful Tips to Transfer Calls More Efficiently
Everything You Need for a Professional Phone System
6 Best Business Phone Systems With Extensions in 2025
Let’s look at the best business phone system with extension features that you can try out in 2025 today!
1. Talkroute
Talkroute is a powerful, flexible phone system designed to meet the needs of businesses of all sizes. With its ability to create unlimited extensions for teams and departments, Talkroute makes it easy to connect your callers to the right people every time.
Whether you’re routing calls to a single person, multiple devices, or entire departments, Talkroute helps maintain smooth and professional communication within your business!
Key features
- Unlimited extensions: Create as many single or multi-digit extensions as your business needs for teams and departments.
- Customizable call routing: Forward and route calls to multiple devices with flexible ringing options.
- Voicemail management: Assign unique mailboxes, enable voicemail-to-email notifications, and access transcriptions for quick follow-ups.
- Multi-level menus and submenus: Design call menus with submenus for language options, locations, or additional departments.
- Dial-by-name directories: Help callers connect with the right team member using easy-to-navigate directories.
- User access control: Set permissions to allow team members access to specific extensions, voicemails, or call recordings.
- Cross-device compatibility: Use Talkroute on desktop, mobile, and web apps for seamless communication from anywhere.
- Text messaging: Send and receive business text messages from your toll-free or local numbers.
- Call recording: Automatically record calls with unlimited storage for training or record-keeping.
- Video meetings: Host virtual meetings with screen sharing, chat, and whiteboard features for collaboration.
Book a live demo today and see how your business can benefit from Talkroute’s innovative features.
2. 8×8
Source: 8×8.com
8×8 offers an all-in-one business communication solution with voice, video, and team messaging. It is designed for scalability and comes with advanced analytics for businesses.
Key features:
- VoIP calling: Make crystal-clear calls using internet connectivity.
- Unlimited calling: Connect with clients or colleagues in selected regions without limits.
- Call queues and extensions: Improve call management and internal team communication.
- AI-powered analytics: Gain insights into call performance and customer interactions.
- Team messaging: Use instant messaging for fast and efficient collaboration.
- CRM integration: Link with popular business tools to keep all data in one place.
- Mobile and desktop apps: Stay connected on the go or from your office.
- Auto-attendant: Automate call routing to improve response times.
3. Grasshopper
Source: grasshopper.com
Grasshopper is a virtual phone system tailored for small businesses and entrepreneurs. It works with existing mobile and landline phones, providing a professional appearance.
Key features:
- Virtual phone numbers: Create toll-free or local numbers to suit your business needs.
- Voicemail and call forwarding: Redirect calls and listen to messages anytime.
- Business texting: Communicate with customers via SMS professionally.
- Mobile and desktop apps: Access features from any device for convenience.
- Extensions: Offer callers direct access to specific team members.
- Voicemail transcription: Read voicemail messages in text format.
- Simultaneous call handling: Avoid missed calls by routing them to available lines.
4. Dialpad
Source: dialpad.com
Dialpad is an AI-powered communication platform that combines voice, video, and messaging. It is designed for modern, remote-first businesses.
Key features:
- AI-powered transcriptions: Get real-time transcriptions during calls or meetings.
- VoIP calling: Make and receive calls with clear audio over the internet.
- Auto-attendant: Provide automated menus to guide callers efficiently.
- Mobile and desktop apps: Stay productive by managing calls from anywhere.
- Video meetings: Collaborate with your team through virtual video calls.
- Extensions: Improve internal connectivity with dedicated team numbers.
- CRM integrations: Sync your communications with popular business tools.
- Scalable plans: Expand features as your business grows.
5. Zoom Phone
Source: Zoom.com
Zoom Phone integrates seamlessly with the popular Zoom platform, offering VoIP services for businesses of all sizes. It provides a flexible communication system with features designed for modern workplaces.
Key features:
- VoIP calling: High-quality audio over the internet for clear and reliable calls.
- Video and voice integration: Combine video meetings and phone calls in one platform.
- Call routing: Automatically direct calls to the appropriate team or department.
- Call recording: Save and review calls for training or documentation purposes.
- Mobile and desktop apps: Access features from your smartphone or computer for flexibility.
- Voicemail transcription: Receive voicemail messages converted into text for quick reading.
- Extensions: Assign unique numbers for internal communication between team members.
- International calling: Connect with global clients and teams at competitive rates.
6. Vonage
Source: Vonage.com
Vonage offers flexible business communication solutions, from voice to video and team messaging. It is well-suited for small to large businesses.
Key features:
- VoIP calling: Rely on consistent and clear internet-based calls.
- Unified communications: Combine messaging, video, and voice into one system.
- Call forwarding: Redirect calls to other devices or team members.
- Extensions: Assign internal phone numbers for seamless team communication.
- Mobile and desktop apps: Access features anywhere, on any device.
- CRM integration: Connect with tools like Salesforce for streamlined operations.
- Voicemail transcription: Convert voicemails into readable text for quick access.
- Scalability: Adapt the system as your business grows or changes.
Key Features to Prioritize in Business Phone Systems with Extensions
When selecting the best business phone system with extensions, understanding the key features is essential to meet your business needs.
Call Management Features
Call management features are at the heart of a good business phone system. These tools make it easier to direct calls, handle messages, and maintain smooth communication.
These features can include:
- Call recording – Helps with staff training, monitoring quality, and keeping detailed call records.
- Voicemail – Let callers leave messages so nothing important gets missed.
- Call routing – Directs calls to the right department or person without delays.
- Auto-attendants – Automated menus (e.g., “Press 1 for Sales”) that save time for both callers and staff.
- Call forwarding – Redirects calls to a mobile phone or another number when the recipient isn’t at their desk.
Device Compatibility
Your phone system should work across all the devices your business uses. Having flexibility with device compatibility ensures that communication stays seamless across your team.
Supported devices might include:
- Desk phones – Great for office-based employees who need consistent call quality.
- Mobile phones – Useful for remote or hybrid workers who need to stay connected.
- Desktop and mobile apps – Allow calls, messages, and voicemails to be managed directly from computers or smartphones.
Scalability
As your business grows, so will your communication needs. The right system should adapt to these changes easily, without expensive upgrades or complications.
Scalable features to look for:
- Easy upgrades: Adding new lines and extensions without replacing the entire system.
- Multi-location support: Stay connected across multiple locations or with remote teams.
- Subscription options: Offers flexible plans that let you adjust based on team size.
Customer Support
Good customer support is critical when choosing a business phone system. You need a provider that is available to help with setup, troubleshooting, and questions as they arise.
What to look for in customer support:
- Reliable technical support: 24/7 availability for resolving technical issues.
- Step-by-step guides: Comprehensive setup guides and onboarding support.
- Customer-focused: Knowledgeable representatives who understand your business needs
Useful Extra Features
While the basics are important, some additional features can make a big difference in how effective your phone system is for your business.
Examples of useful extras include:
- VoIP support – Modern VoIP phone systems provide clear calls and lower costs.
- Virtual phone numbers – Expand your reach with local or toll-free numbers.
- Security features – Protect sensitive business communication from breaches.
- Software integrations – Sync your phone system with CRM tools or other apps to streamline operations.
Run your business smarter with Talkroute’s comprehensive features. See how it works now!
How to Pick the Right Business Phone System For You
With so many providers and features available, it’s important to take the time to evaluate what matters most for your business. Here are a few tips we can give you:
Think About Your Business Needs
Start by identifying your company’s communication goals and challenges. This helps you focus on features that align with your daily operations.
Perhaps you can ask yourself the following questions:
- How many employees need extensions?
- Do you have remote or hybrid workers who rely on mobile apps?
- Do you require advanced features like call recording or virtual phone numbers?
- What’s your typical call volume?
Compare Providers and Features
Once you understand your needs, you need to compare different phone systems to find the best match.
Although we provided the best ones above, it doesn’t hurt to do your own research too. Pay special attention to how providers balance features, ease of use, and cost.
Next, you should also compare pricing plans to make sure they fit your budget and offer the features you need.
Read Reviews and Gather References
Customer feedback is a valuable resource when choosing a phone system. Reviews can reveal how reliable the system is, how helpful the provider’s customer support team is, and whether the system is easy to use.
Look for reviews from businesses similar to yours, as they can highlight how well the system might work for your specific needs.
It’s also a good idea to ask for references directly from the provider. Hearing firsthand from another business about their experience with setup, support, and ongoing use can provide more confidence in your choice.
If you’re curious about Talkroute’s services, you can freely chat, email, or call us at 1.800.747.2140.
Consider Scalability
A good business phone system should work for you today and grow with your business tomorrow.
That’s why scalability is a critical factor to consider, especially if your team is expanding or if your call volume is expected to increase.
Look for systems that let you easily add more phone extensions, upgrade to advanced features, or connect multiple locations.
Flexible subscription plans can also help you adjust costs as your needs change, whether you’re scaling up or downsizing.
Choosing a scalable solution now can prevent headaches and unnecessary expenses in the future.
How Much Do Business Phone Systems Cost?
Knowing the potential costs of business phone systems can really help you with deciding which system to get. Here’s what you need to know.
Upfront Costs
The first thing you have to spend on a business phone system is its initial setup. These may include purchasing desk phones, setting up mobile apps, or installing software.
For traditional phone systems, hardware costs can be higher, as they require physical infrastructure like PBX systems.
In contrast, VoIP phone systems often have lower upfront costs since they rely on cloud-based technology and existing internet connections.
Monthly Subscription Fees
Most business phone systems operate on a subscription model, where you pay a monthly fee based on the number of users or lines.
These fees typically include basic features like phone extensions, call handling, and customer support.
However, the pricing can increase if you add advanced tools such as call routing, analytics, or integrations with other software.
Costs for Additional Features
Some features may not be included in standard plans and could incur extra charges. For example, tools like call recording, voicemail transcription, or dedicated virtual phone numbers might come with an added cost.
It’s important to review the provider’s pricing structure carefully to ensure you’re getting what you need without overpaying for extras.
Scalability and Long-Term Costs
If you expect your business to grow, it’s wise to consider how costs will change as you scale.
A good phone system should allow you to add new users or locations without requiring expensive upgrades.
Cloud-based solutions are often more affordable for scaling, as they typically have flexible pricing plans that adapt to your needs.
Recommended Reading:
15 Ways to Spend Under $200 to Grow Your Business
20 Innovative Customer Acquisition Strategies for 2025
Keep Your Team Connected From Anywhere with Talkroute
Talkroute makes business communication simple and reliable, no matter where you are. Whether you’re managing calls, sending texts, or hosting meetings, everything is at your fingertips.
Here’s why Talkroute is the perfect choice for your business:
Calls From Anywhere
Take business calls on your desktop, smartphone, or browser without buying any new gadgets. Keep your personal number private while enjoying unlimited minutes for toll-free and local calls.
Text With Your Customers
Did you know most businesses don’t even use SMS? With Talkroute, you can text your customers using your business number. Plus, you can manage conversations from our app or even your email.
Host Easy Video Meetings
Need to meet face-to-face? Talkroute lets you host video calls with up to 100 participants. Share your screen, use a whiteboard for brainstorming, and let guests join with just one click—no downloads needed.
Voicemail Made Simple
Check voicemails anywhere—email, browser, or apps. Get unlimited storage, create custom greetings, and even read transcriptions for quick follow-ups.
Customize Everything
Want to adjust call routing or tweak your greetings? No problem! With Talkroute, you’re in full control of your phone system, and it only takes seconds to make changes.
Why settle for less when you can have a phone system that does it all? Get your free trial today!
FAQs About Best Business Phone Systems with Extensions
Can VoIP phones have extensions?
Yes, VoIP phone systems can have extensions. This feature works similarly to traditional phone systems, allowing businesses to assign phone extensions to employees or departments.
With most business phone systems, including VoIP, you can connect desk phones, mobile apps, or desktop and mobile apps to the same phone system. This makes it easy to manage business calls efficiently, no matter where your team is located.
What is the best phone service for a small business?
The best phone service for a small business depends on its specific needs. VoIP phone systems are popular for small business phone systems because they are flexible, cost-effective, and easy to use.
Many services offer features like call recording, virtual phone numbers, and integrations with mobile phones and desktop apps. Unlike traditional phone systems, VoIP allows you to handle business calls on a mobile app, which is ideal for teams working remotely or on the go.
Talkroute is a good option with the right mix of features, pricing, and support for your business.
What is the cheapest way to have a business phone?
The cheapest way to set up a business phone is to use a VoIP phone system. Many providers offer affordable plans that include features like phone extensions, call recording, and the ability to use a virtual phone number.
These systems work with existing devices, like cell phones or desk phones, so you don’t need to invest in expensive phone models or hardware.
You can also use a mobile app or desktop app to handle business calls, which can save on costs compared to traditional phone systems.
Stephanie
Stephanie is the Marketing Director at Talkroute and has been featured in Forbes, Inc, and Entrepreneur as a leading authority on business and telecommunications.
Stephanie is also the chief editor and contributing author for the Talkroute blog helping more than 200k entrepreneurs to start, run, and grow their businesses.
