5 Best Small Business Virtual Phone Systems

Running a small business means staying connected with customers, team members, and suppliers. But old-school landline phones don’t cut it anymore. That’s why so many businesses are switching to virtual phone systems.

A virtual phone system is a phone service that works over the Internet. It lets people make and receive calls from anywhere using a mobile phone, laptop, or computer.

Let’s talk about our top 5 picks of small business phone systems, what they offer small businesses and more!

How a Virtual Phone System Works

A virtual phone system is an internet-based phone service that allows businesses to make and receive calls without using traditional phone lines. It works using Voice over Internet Protocol (VoIP) technology, meaning it sends voice calls over the Internet instead of a wired phone network.

Here’s a simple way to understand the process:

• Step 1: You dial a number using a mobile app, desktop app, or VoIP phone.
• Step 2: The virtual phone system processes the call and sends it through cloud servers instead of a landline.
• Step 3: The system converts your voice into digital data and transmits it over the internet.
• Step 4: The recipient’s phone receives the data, and it is converted back into sound.
• Step 5: The call is completed just like a regular phone call but with more flexibility.

Unlike landlines, virtual phone systems don’t need traditional phone cables or hardware. As long as there’s an internet connection, calls can be made and received from anywhere in the world.

Have questions? Talkroute is here to help! Chat with us, email us, or call 1.800.747.2140.

Top 5 Picks for Small Business Virtual Phone Systems!

Now that you know how virtual phone systems work, let’s look at your top choices for one! We’ve listed here our recommendations.

1. Talkroute

Talkroute is a virtual phone system that helps small businesses stay connected with their customers through calls, texts, and video meetings—all from one easy-to-use platform.

With Talkroute, you can manage business communications from anywhere using desktop and mobile apps.

It’s designed for businesses of all sizes but is especially helpful for small businesses that want a professional phone system without the cost of extra hardware or complicated setup.

Key features:

• Call forwarding & routing – Forward calls to mobile phones, landlines, and desktops with customizable schedules and ring strategies.
• Business text messaging – Send and receive texts from local and toll-free numbers. Manage messages on desktop, mobile, or web apps.
• Video meetings & screen sharing – Host video meetings with up to 100 participants, share your screen and collaborate using a whiteboard feature.
• Voicemail management – Access voicemail via apps or email with transcriptions and unlimited mailboxes for teams and departments.
• Call recording – Record and store calls for training, dispute resolution, and reviewing client interactions.
• Multi-level call menus & extensions – Create custom menus with single- or multi-digit extensions to route calls to the right team or department.
• Apps for every device – Available on MacOS, Windows, Linux, iOS, Android, and web browsers for business communications on the go.

Flexible plans for any business. Choose what works for you.

2. RingCentral

Source: ringcentral.com

RingCentral is a popular virtual phone system designed for businesses of all sizes. It’s a cloud-based solution that helps teams stay connected no matter where they are.

You can manage calls, messages, and video meetings all in one place, making it a suitable tool for improving communication.

Key features:

• Unlimited calls – Make unlimited voice calls within the U.S. and Canada without extra fees.
• Video meetings and messaging – Host high-quality video meetings and chat with your team in real time.
• Mobile and desktop apps – Use RingCentral on your phone, tablet, or computer for complete flexibility.
• Call recording – Record important calls for training or review purposes.
• Auto-attendant – Automatically route calls to the right department with a customizable virtual receptionist.

3. Ooma Office

Source: ooma.com

Ooma is an easy-to-use phone system suitable for small businesses. It offers a plug-and-play setup with no complicated hardware or long contracts. You can manage calls from your mobile device or computer, making it a convenient choice for business owners on the go.

Key features:

• Virtual receptionist – Greet callers and route them to the right person with an automated assistant.
• Voicemail-to-email – Get voicemails sent to your email as audio files so you can listen anytime.
• Call blocking – Block spam and unwanted calls to keep your lines clear.
• Mobile app – Answer, manage, and make business calls directly from your smartphone.
• Call forwarding – Forward incoming calls to any device or number to stay reachable.

4. Dialpad

Source: dialpad.com

Dialpad is a modern business phone system that combines voice, video, and messaging into one platform. It’s built with artificial intelligence to offer smart features like real-time call transcripts and suggestions.

It integrates with popular tools, which makes it suitable for teams that need more than just a basic phone system.

Key features:

• Unified communication – Use voice calls, video meetings, and messaging in a single platform.
• AI-powered call summaries – Get call transcripts and action items automatically after calls.
• Mobile and desktop apps – Stay connected on your computer or mobile device wherever you are.
• Integrations – Connect with tools like Google Workspace and Microsoft 365 for smoother workflows.
• HD video conferencing – Hold high-quality video meetings with your team or clients.

5. OpenPhone

Source: openphone.com

OpenPhone is a business phone system designed for startups and small teams. It’s simple, flexible, and works with your existing devices. You can use it to separate your business and personal calls while keeping everything organized on one device.

Key features:

• Business phone number – Get a business number that works on your mobile device without needing another phone.
• Shared inbox – Collaborate with your team on calls and messages by sharing a common inbox.
• Call recording – Record calls to capture important details for future reference.
• Voicemail transcription – Read your voicemails in text form for easier and quicker review.
• Integrations – Connect OpenPhone with tools like Slack and HubSpot to streamline your communication.

Why Are Small Businesses Switching to Virtual Phone Systems?

Small businesses are looking for more flexible and cost-effective ways to handle calls. Below are some of the biggest reasons why small businesses are switching to virtual phone systems.

Lower Costs Without Sacrificing Quality

One of the main reasons small businesses choose virtual phone systems is cost savings. Traditional landlines require expensive setup fees, hardware, and ongoing maintenance costs.

In contrast, virtual phone systems are cloud-based, meaning there’s no need for extra wiring, phone hardware, or in-office equipment.

Here is a table summarizing the cost comparison of a virtual phone system vs. traditional landlines.

Cost Factor	Virtual Phone System	Traditional Landline
Setup Fees	Usually $0, cloud-based setup	High setup fees for wiring and installation
Hardware Costs	No physical phones required, works with mobile devices	Desk phones and physical infrastructure required
Monthly Fees	Low-cost subscription plans	Higher fees for line rental and maintenance
International Calls	Often included in plans or available at low rates	Expensive per-minute international charges

Instead of paying for separate phone lines, long-distance charges, and maintenance, businesses can choose a virtual system with a simple monthly plan that fits their budget.

Work from Anywhere Without Missing Calls

A big advantage of virtual phone systems is the ability to work from anywhere. Since calls are handled through the Internet, employees can answer business calls on their mobile phones, laptops, or desktops, no matter where they are.

This is especially useful for:

• Remote teams – These are teams that need to stay connected without a central office.
• Business owners – Those who travel frequently and don’t want to miss important calls.
• Freelancers and startups – Professionals who want a professional phone number without a physical office.

With call forwarding and mobile apps, small businesses never have to worry about missing customer inquiries, sales calls, or team updates.

A More Professional Image for Small Businesses

First impressions matter, and the way a business handles calls shapes how customers see them. A virtual phone system makes a business look organized and established, even if it’s run by just a few people.

With a dedicated business number, small businesses can separate personal and work calls, making communication more structured. Customers are more likely to trust and respect a business that has a proper phone setup rather than relying on a personal cell phone number.

This also helps business owners and employees maintain work-life balance, as they can keep personal calls and business calls separate without carrying multiple phones.

Fewer Missed Calls, More Opportunities

Small businesses can’t afford to miss important calls, whether from potential customers, existing clients, or business partners. A virtual phone system makes it easier to stay available, even when business owners or employees are away from their desks.

Since calls can be answered from multiple devices, there’s always a way to stay connected. This helps businesses respond faster, build better relationships with customers, and avoid losing sales due to unanswered calls.

Easy to Grow With the Business

A traditional phone system limits how much a business can grow because adding new lines means installing extra equipment, running new cables, and paying higher fees. A virtual phone system, however, adapts as the business expands without extra hassle.

This flexibility is perfect for:

• New businesses – Start small but plan to grow.
• Seasonal businesses – Need more phone access at certain times of the year.
• Growing companies – Expect to hire more employees in the future.

Instead of getting stuck with a system that can’t keep up, small businesses can scale their communication needs without the added costs and complications of traditional phones.

A Simple Way to Stay Organized

For many small businesses, handling calls quickly and efficiently can be a challenge. A virtual phone system helps keep communication structured and manageable, making it easier to:

• Call tracking – Keep track of incoming and outgoing calls.
• Proper call routing – Make sure customers always reach the right person.
• Simplified communication – Avoid juggling multiple phone numbers or devices.

This makes daily operations smoother and helps businesses stay focused on work rather than dealing with phone-related issues.

Not ready for a live demo? No problem! Watch a self-guided demo to explore Talkroute at your own pace. See how it works.

How Virtual Phone Systems Help Small Businesses

Below are some of the most useful virtual phone system features and how they help small businesses and entrepreneurs.

Professional Business Phone Numbers

Customers are more likely to trust a business that has a dedicated business number instead of a personal cell phone. A virtual phone system gives businesses the ability to create different types of phone numbers, such as:

• Local numbers – Helps businesses build trust with local customers by using an area code they recognize.
• Toll-free numbers – Makes businesses look more established and accessible by allowing customers to call without long-distance charges.
• Vanity numbers – Custom numbers that are easy to remember, like 1-800-FLOWERS, which can help with marketing.

Having a professional business number makes a business look more established and credible. Customers feel more comfortable calling a business with a real business number rather than a personal cell phone.

It also helps separate work and personal calls, allowing business owners to maintain a more professional presence.

Call Forwarding Keeps Businesses Connected Anywhere

Small business owners and entrepreneurs are often on the move, whether meeting clients, running errands, or working remotely.

With call forwarding, they never have to miss an important call because the system can send calls to a mobile phone, home office, or any other device.

• Call forwarding options – Forward calls to mobile phones, home offices, or other team members.
• Scheduled forwarding – Set up automatic forwarding based on schedules (e.g., business hours vs. after-hours).
• Backup routing – Create backup forwarding options if the first line is busy.

Business owners can take calls wherever they are, reducing the risk of missed opportunities or customer frustration.

Auto-Attendant Makes Small Teams Look Bigger

Not every small business can afford a full-time receptionist to answer calls, but an auto-attendant can handle this automatically. It greets callers, provides options, and routes calls to the right person or department.

For example, a one-person business can still sound like a large company by offering menu options like:

• “Press 1 for Sales”
• “Press 2 for Support”
• “Press 3 for Billing”

Even if all calls go to the same person, it gives the impression of a structured and organized business.

For small businesses, an auto-attendant creates the image of a professional, well-organized company. It makes it easier for customers to reach the right person while reducing the time spent answering basic calls.

Even if a business has only a few employees, it can still provide a seamless and structured call experience.

Voicemail-to-Email Helps Stay Organized

Listening to voicemail messages can be time-consuming, especially for busy people. Voicemail-to-email sends voice messages as text or audio files directly to an inbox, making it easier to read, organize, and respond to messages without having to dial in.

For small business owners, these features save time by eliminating the need to listen to long voicemails. Instead, they can quickly read the message and respond when it’s convenient.

It also helps keep track of important customer inquiries, ensuring that no message gets overlooked.

Call Recording for Better Customer Service and Training

For businesses that deal with customer service, call recording can be a game-changer. It allows business owners to review calls, check for mistakes, and train employees on how to handle customer interactions.

It’s also useful for freelancers and consultants who need to keep records of client discussions for future reference.

Call recording helps businesses improve the way they interact with customers. Reviewing past calls can highlight areas for improvement, ensure employees follow proper communication practices, and provide a record of important client discussions. This can lead to better customer service and stronger client relationships.

Business Text Messaging Improves Customer Engagement

Not all customers like making phone calls. Many prefer to send a quick text to ask about a product, confirm an appointment, or request support.

Virtual phone systems often come with business texting, allowing companies to communicate with customers through SMS just like they would in a conversation.

Offering text messaging as an option makes communication more convenient for customers. Many people prefer texting over calling, and businesses that offer this option can provide faster service and improve customer satisfaction.

It also allows businesses to send reminders, confirm appointments, and respond to inquiries more efficiently.

Easy Ways to Set Up a Virtual Phone System for Your Small Business

Setting up a virtual phone system is easy, but setting it up the right way can improve efficiency, customer service, and business growth. Here are the key steps to set up a virtual phone system for a small business.

Understand Business Needs and Call Volume

Before picking a virtual phone system, business owners should think about how they’ll use it. Every business has different communication needs, so choosing the right features is important.

You should ask yourself:

• How many employees need access to the system?
• Will the business handle a lot of incoming calls or mostly make outgoing calls?
• Does the business need multiple phone numbers for different departments?
• Will employees work remotely and need mobile access?
• Does the business need international calling or text messaging?

Answering these questions helps small businesses avoid paying for features they don’t need while making sure they have the right setup to run smoothly.

Choose the Right Virtual Phone System Provider

Not all virtual phone systems are the same. Some offer basic call management, while others include advanced features like call analytics, integrations, and team collaboration tools.

Here’s what to look for:

• Pricing plans – Pick a plan that fits the budget without hidden fees.
• Call quality and reliability – Choose a provider known for clear, stable calls.
• Customer support – Look for 24/7 support in case issues come up.
• Scalability – The system should be able to grow with the business.
• Integration options – If the business uses CRM tools, email, or other software, the phone system should connect easily.

Comparing providers upfront helps avoid future headaches and makes sure the system meets the business’s needs.

Set Up Business Numbers and Call Routing

After choosing a provider, the next step is to set up phone numbers and route calls properly.

Here are some steps you can take:

• Pick a business phone number – Choose a local, toll-free, or vanity number.
• Set up call forwarding – Route calls to mobile phones or team members.
• Create a call menu – Use an auto-attendant to direct callers to the right person.
• Set business hours – Configure after-hours call settings.

A well-planned call flow helps customers reach the right person quickly and improves response times.

Train Employees on Using the System

A virtual phone system only works well if employees know how to use it. Training should cover the basics like answering calls, transferring calls, checking voicemail, and using other key features.

Try out our simple training checklist:

• Making and receiving calls – Learn how to use the system on mobile, desktop, or VoIP phones.
• Transferring calls – Know how to send calls to the right person.
• Setting up and checking voicemail – Make sure no messages get missed.
• Using text messaging – Communicate with customers through the system.
• Accessing call history and reports – Track calls and review past conversations.

Training helps reduce missed calls, improves customer interactions, and makes the team more efficient.

Test the System and Make Adjustments

Before launching the system, small businesses should test it to catch any issues. This helps avoid frustration for both employees and customers.

Here’s what to test:

• Make test calls – Try calling from different devices to check call quality.
• Check call forwarding – Make sure calls go to the right person.
• Test voicemail – Confirm messages are recorded and sent correctly.
• Review the call menu – Ensure the auto-attendant directs callers properly.
• Get feedback – Ask a few customers or friends to call and share their experiences.

If anything isn’t working right, adjustments can be made before fully using the system.

Monitor Performance and Optimize Over Time

Once the system is up and running, small businesses should track its performance. Most virtual phone systems provide call reports and analytics, which help identify missed calls, peak call times, and areas for improvement.

Here are ways to improve performance:

• Review call logs – Spot trends in call volume.
• Adjust call routing – Balance calls between departments if needed.
• Update voicemail and call menus – Make changes based on customer feedback.
• Use call recording – Train employees and improve customer service.

Regularly checking the system helps keep it running smoothly and supports business growth.

We’ll show you how Talkroute makes it easy to handle calls and messages. Schedule your demo today.

Common Challenges of Virtual Phone Systems and How to Overcome Them

A virtual phone system can greatly improve communication for small businesses, but like any technology, it comes with challenges. Here are some of the most common problems businesses face when using a virtual phone system and how to fix them.

Poor Call Quality Due to Internet Issues

Since virtual phone systems run on the Internet, the quality of calls depends on the speed and stability of the Internet connection. If calls sound choppy, delayed, or disconnected, it’s likely due to weak bandwidth or network congestion.

Recommended fixes:

• Use a high-speed internet connection – A strong internet connection is necessary for clear voice calls. Most VoIP systems recommend at least 100 kbps per call for smooth audio.
• Prioritize VoIP traffic on your network – Routers with Quality of Service (QoS) settings can give priority to voice data, preventing other online activities (like video streaming or large downloads) from affecting call quality.
• Use a wired connection instead of Wi-Fi – Ethernet cables provide a more stable connection than Wi-Fi, reducing dropouts or lag.
• Test internet speed regularly – Running a speed test can help identify if the connection is strong enough for virtual calls.

Dropped Calls or Unreliable Service

If calls frequently disconnect or fail to go through, it may be due to network instability or issues with the service provider.

Recommended fixes:

• Check for network congestion – Too many devices using the same connection can cause issues. Businesses should consider upgrading their internet plan if call drops are frequent.
• Choose a provider with strong uptime guarantees – A reliable VoIP provider should offer at least 99.9% uptime, ensuring minimal service disruptions.
• Use a backup internet connection – Having a secondary connection (such as mobile data or a separate Wi-Fi network) can keep calls running if the main internet goes down.

Security and Privacy Concerns

Because virtual phone systems operate online, businesses must protect their data, calls, and customer information from hackers or unauthorized access. VoIP fraud and phishing attacks are real risks, especially for businesses that handle sensitive customer information.

Recommended fixes:

• Use strong passwords and two-factor authentication (2FA) – Every user should have a unique login with a strong password to prevent unauthorized access.
• Choose a provider with end-to-end encryption – Encryption protects call data and messages from cyber threats.
• Set up call restrictions – Businesses should limit international calling if they don’t need it, reducing the risk of fraud.
• Regularly update software and security settings – Keeping the phone system’s apps, routers, and firewalls up to date prevents security gaps.

Call Routing Problems and Missed Calls

If a virtual phone system isn’t configured correctly, calls may go to the wrong person, get stuck in long wait times, or even go unanswered. This can frustrate customers and cause businesses to lose potential sales.

Recommended fixes:

• Set up call forwarding correctly – Calls should be routed to the right person or department based on business needs.
• Use an auto-attendant for organization – An automated menu can help direct calls to the correct extension or team member without manual transfers.
• Test call flows regularly – Businesses should make test calls to check that routing settings work as expected.

Unexpected Costs and Hidden Fees

Some virtual phone providers advertise low prices, but businesses may later find hidden fees for add-ons, international calls, or premium features.

Recommended fixes:

• Compare pricing plans before choosing a provider – Businesses should carefully review what’s included in each subscription tier.
• Ask about additional costs upfront – If certain features (like call recording or extra phone numbers) aren’t included, businesses should check how much they cost separately.
• Monitor monthly bills – Keeping an eye on invoices helps identify unexpected charges before they become a problem.

Integration Issues With Other Business Tools

Many businesses use CRM systems, email, and collaboration tools to manage operations. If a virtual phone system doesn’t integrate well with existing software, it can slow down processes and create inefficiencies.

Recommended fixes:

• Choose a system that integrates with existing business tools – Many virtual phone systems sync with CRM platforms, email services, and messaging apps.
• Test integrations before fully switching – Businesses should test how well the phone system works with their other tools before rolling it out company-wide.
• Use APIs or third-party connectors – Some systems allow custom integrations if built-in options aren’t available.

Recommended reading:

Top 7 Restaurant Phone System Solutions in 2025

Business Phone System Comparison: Best Options for 2025

The Small Business Phone System That Does It All—Talkroute

Running a business means staying connected, no matter where you are. That’s why you need a reliable virtual phone system that makes calls, texts, and meetings easy.

Talkroute gives you everything in one place—without the need for extra hardware or complicated setups.

Stay Professional, No Matter Where You Work

With call forwarding and routing, your business calls always reach the right person, whether you’re at your desk or using your mobile phone. No more missing calls or relying on personal numbers—Talkroute keeps your business looking professional.

Call, Text, and Meet in One App

Small businesses need more than just phone calls. With Talkroute, you can send business texts, host video meetings, and manage voicemails all from one place.

Whether you’re answering customer questions, checking in with your team, or setting up a meeting, Talkroute keeps everything simple.

No Expensive Hardware or Complicated Setup

Unlike traditional phone systems, Talkroute runs on your existing devices—your smartphone, desktop, or laptop. There’s no need to buy special equipment or hire IT support.

You can set everything up in minutes and start making calls right away.

Custom Features Designed for Small Businesses

Talkroute is built with small business owners in mind. You get:

• Call forwarding and routing – Keep customers connected.
• Customizable voicemail – Includes email notifications.
• Business texting – Send quick customer updates.
• Call recording – Review and improve communication.
• Video conferencing – Meet with clients and team members.

Affordable and Scalable for Growing Businesses

Whether you’re a solo entrepreneur, a growing team, or managing multiple locations, Talkroute grows with you. Add new team members, customize your call flow, and adjust settings as your business expands—all without hidden fees or complex contracts.

Get started with Talkroute for free! No risk, no commitment. Try it now.

FAQs About Small Business Virtual Phone Systems

How much does a VoIP phone system cost for a small business?

A VoIP phone service for a small business can cost anywhere from $10 to $50 per user each month, depending on the features and provider. Some services include unlimited calling, video conferencing, and automatic call recording, while others charge extra for those options.

Unlike traditional phone systems, VoIP runs on internet protocol, so you don’t need expensive desk phones unless you prefer them. Many providers also offer mobile apps, allowing you to handle business communication from a mobile phone or other mobile device.

Is VoIP worth it for small businesses?

Yes, VoIP is worth it for most small businesses. It’s usually more affordable than traditional phone systems, offers more flexibility, and comes with useful features like incoming and outgoing calls from a mobile app, video conferencing, and toll-free numbers.

With a VoIP phone service, you can also keep a professional business phone number without being tied to a desk phone. If your business relies on mobile devices or remote work, VoIP makes business communication easier and more cost-effective.

Is there a free VoIP service?

Some VoIP providers offer free plans, but they usually come with limits. You might get a free business phone number with basic incoming and outgoing calls, but advanced features like unlimited calling, automatic call recording, and video conferencing often require a paid plan.

Free VoIP services work well for small teams or startups, but most businesses eventually upgrade to a paid phone system for better reliability and features.

Does VoIP use a lot of data?

VoIP uses data, but not as much as you might think. A typical phone call over a VoIP phone service uses about 0.5 MB of data per minute, while video conferencing can use much more, depending on the quality.

If you’re making phone calls on a mobile phone or cell phone without Wi-Fi, it’s good to keep an eye on your data usage. Businesses with a stable internet connection won’t have to worry, and many VoIP providers optimize calls to use less data without reducing call quality.