Communication is important in almost everything, especially in business. A good and cost-effective business phone system that’s reliable, easy to use, and affordable can help your company stay connected and ahead of the game.
With so many options available, how can you be sure you’re making the right choice?
In this blog post, we’ll discuss different types of phone systems for businesses and what features they have, offering you an in-depth look at their pros and cons. We’ll also touch on real-life examples of businesses that have successfully implemented these technologies.
Our goal is to help you make an informed decision that will truly change the way you do communication within your business.
Key Takeaways
- Understand the different types of business phone systems and their features to select an appropriate option for your needs.
- Talkroute is considered #1 due to its scalability, no contracts, user-friendly interface, and free trial period.
- Consider security measures and compliance with laws and regulations when selecting a provider. Prioritize customer support for successful implementation.
- Look for key features like call routing, voicemail-to-text, mobile compatibility, and integration with tools you already use.
- Cloud-based systems save money, scale easily, and keep you future-ready.
- Upgrading from landlines to VoIP means better features and flexibility.
- Hybrid setups, IoT, and AI are the future of business communication.
Understanding Business Phone Systems
A business phone system is a setup that helps companies manage phone calls. It’s like a regular phone, but it has extra features that make it easier for businesses to communicate. Business office phone systems are very useful for keeping everyone in the company connected and making sure customers can easily reach the right person.
The evolution of business phone systems has been driven by advances in technology and the changing needs of businesses.
In the early days, the traditional office phone system was private branch exchange (PBX), a phone network that uses hardware to set up and route calls. This setup provided businesses with a basic phone system to manage their calls.
As technology improved and the internet became more common, new business phone systems were created. These systems offer better features, more flexibility, and lower costs to meet the needs of businesses.
Today, there are several types of business phone systems to choose from. Each type of system has its own unique offerings, providing businesses with a range of options for their communication needs, including the right business phone service.
Let’s discuss more about these types further in the next section.
Simplify your business communications with Talkroute’s all-in-one app! See how it works.
Types of Business Phone Systems
There are three main types of phone systems: traditional landlines, VoIP phone systems, and virtual phone systems. We’ll also compare their pros and cons, helping you decide which option is best for your business.
Traditional Landlines
Traditional landlines have been the standard for many years. These are the classic phone systems that use physical phone lines to make and receive calls.
Pros:
- Reliable call quality
- Low initial costs
Cons:
- Limited features compared to modern systems
- Expensive to maintain
- Depends on copper wiring, which is prone to damage and disruption
VoIP Phone Systems
Voice over Internet Protocol, also known as VoIP phone system, lets you make calls over the Internet. VoIP phone systems are now a popular choice for businesses because they offer many features and benefits that traditional landlines don’t have.
Pros:
- Offers advanced features like HD audio, video conferencing, text messaging, and call forwarding
- Flexible and suitable for remote or hybrid work setups
- Generally more affordable than traditional landlines over time
Cons:
- Requires a strong and stable internet connection
- Can experience latency or call quality issues if the internet connection is weak
Virtual Phone Systems
A virtual phone system allows you to forward calls to your mobile or home phone using an app or software. They provide businesses with the ability to operate remotely and share a single number with team members across the globe.
Pros:
- Affordable for small businesses
- Enables remote work and global team collaboration
- Shares a single number across multiple users
Cons:
- Requires a reliable internet connection
- Lacks some advanced access controls, permissions, and online voice transmission found in other systems
Recommended Reading:
How to Use Your Existing Phones with a Virtual Phone System
Get a Virtual Phone Number in 2025 – The Ultimate Guide
Virtual Phone System: Benefits, Features, & Top Providers in 2025
Top 10 Business Phone Systems to Check Out in 2025
There are numerous business phone systems on the market, and you might feel overwhelmed with choices. That’s why we’re here to list the best business phone system in 2025!
1. Talkroute
Talkroute is a virtual phone system designed to help businesses stay connected and communicate effectively from anywhere.
With its robust features, Talkroute allows you to make and receive calls, send text messages, host video meetings, and manage voicemail seamlessly—all from one easy-to-use platform.
Key features:
- Call forwarding & routing: Forward and route calls to any device, anywhere, with customizable schedules.
- Text messaging: Send and receive SMS/MMS messages using your business numbers across devices.
- Video meetings: Host video conferences with up to 100 participants, including screen sharing and collaboration tools.
- Voicemail management: Access, manage, and transcribe voicemails through apps, email, or browsers.
- Call recording: Automatically record and store calls with unlimited storage for review and training.
- Apps for all devices: Use Talkroute on MacOS, Windows, Linux, iOS, Android, or web browsers for calls and messages.
- Customizable phone system: Adjust call routing, greetings, and settings to fit your business needs.
- Menu options and submenus: Create multi-level menus to efficiently route callers.
- Unlimited extensions: Add single or multi-digit extensions for teams and departments.
- Unlimited minutes: Call for as long as you want.
- Utilize existing phones: No need to buy new ones, Talkroute works with your existing phones.
- No contracts: Have the freedom to decide your own terms!
- User-friendly interface: Easy-to-grasp UI that makes starting a lot easier.
One of the reasons Talkroute is so highly regarded is because it’s easy to scale. It works for both small businesses and larger companies. They also offer a free trial, so businesses can try it out before making a long-term decision.
Experience the phone system built for modern businesses—Start your free trial today!
2. OpenPhone
Source: openphone.com
OpenPhone is a user-friendly option for small businesses that want simple communication tools. It regularly adds new features and updates to help businesses connect with clients and teams worldwide. OpenPhone makes it easy to manage calls and texts in one place.
Key features:
- Global reach – This lets you connect with clients and teams anywhere in the world.
- Business texting – Offers SMS and MMS options for quick communication with customers.
- Custom numbers – Choose from local, toll-free, or vanity numbers to represent your business.
- Shared inbox – Teams can collaborate by managing calls and messages together in one inbox.
3. Ooma
Source: ooma.com
Ooma offers reliable communication services at affordable prices. While some advanced features require upgrades, it provides unique tools like overhead paging, which small businesses may not need.
Key features:
- Overhead paging – Allows you to make announcements over a speaker system.
- Basic VoIP service – Offers internet-based calling with good call quality.
- Call blocking – Helps block unwanted or spam calls from reaching your business.
- Mobile app – Lets you take calls and manage features directly from your smartphone.
4. Grasshopper
Source: grasshopper.com
Grasshopper is suitable for small businesses or teams that need a cost-effective solution. Instead of charging by user, it charges based on the number of phone lines, making it an economical option. It also offers tools to make your business look more professional.
Key features:
- Call forwarding – Automatically sends calls to your mobile or desk phone, so you never miss a call.
- Voicemail transcription – Converts voicemails into text, making it easier to review messages quickly.
- Toll-free numbers – Provides numbers that give your business a professional image.
- Custom greetings – This lets you create personalized greetings to make a good impression on callers.
5. 8×8
Source: 8×8.com
8×8 is a decent option for businesses with international communication needs. It offers unlimited calling to several countries, HD-quality video conferencing, and integrations with popular business tools.
Key features:
- Unlimited calling – Make calls to 14 countries without worrying about extra charges.
- HD audio and video – Offers crystal-clear quality for both calls and video meetings.
- Integrations – Connects with tools like Microsoft Teams, Salesforce, and more.
- Analytics – Tracks call performance and provide insights to improve communication.
6. Zoom Phone
Source: Zoom.com
Zoom Phone is a great choice for businesses already using Zoom for video meetings. It integrates well with the Zoom platform and offers tools to make communication simple and efficient.
Key features:
- Seamless integration – Combines easily with Zoom video conferencing for a unified experience.
- Call recording – This lets you record calls for training or future reference.
- Voicemail transcription – Turns voicemails into text so you can quickly read messages.
- Mobile app – Allows you to make and receive calls while on the go.
7. HubSpot
Source: hubspot.com
HubSpot combines a powerful CRM platform with VoIP features, offering a complete solution for managing sales, marketing, and customer service. It’s suitable for businesses looking to organize their operations and improve customer communication.
Key features:
- CRM integration – This lets you track all customer interactions and data in one system.
- Team collaboration – Makes it easy for teams to work together on sales, support, and marketing tasks.
- Call tracking – Records calls and tracks performance to help improve customer interactions.
- Marketing tools – Includes features for email campaigns, ads, and social media.
8. Dialpad
Source: dialpad.com
Dialpad is a VoIP solution with advanced features, though some are only available in higher-pricing tiers. It is AI-powered, which helps with tasks like call transcription and performance analysis, making it useful for businesses focused on technology-driven solutions.
Key features:
- AI-powered transcription – Provides accurate transcripts of calls to save time on note-taking.
- Voicemail response – This lets you quickly respond to voicemails without delays.
- HD calling – Delivers high-quality audio for a better communication experience.
- Call analytics – Tracks key metrics to help improve call performance and team efficiency.
9. Sideline
Source: sideline.com
Sideline is a simple and cost-effective solution that works with your existing mobile service. It’s suitable for small businesses or freelancers who want a separate business number without spending a lot on a phone system.
Key features:
- Uses existing plan – Works with your current cell phone service to save money.
- Separate business number – Keeps your personal and business communications separate.
- Texting capabilities – Supports SMS messaging for customer communication.
- Call management – Offers tools like call forwarding and voicemail to help you manage calls.
10. Aircall
Source: aircall.io
Aircall is a flexible VoIP system designed for businesses that rely on both calls and texting. While it has some limits with media files, it provides powerful tools to manage customer communication.
Key features:
- Texting support – This lets you send SMS messages to customers and clients.
- Call queuing – Helps manage a large number of incoming calls without losing any.
- CRM integration – Syncs seamlessly with tools like HubSpot, Salesforce, and Zendesk.
- Desktop and mobile apps – This makes it easy to handle calls and messages from any device.
Recommended Reading:
Toll-Free or Local Number: Which One Does Your Business Need?
Key Features to Look for in a Business Phone System
What features of a business phone system are an absolute must for your business to thrive? Here is what we recommend:
Call Routing & Forwarding
Call routing sends calls to the right agent, department, or voicemail based on set rules and IVR prompts. This helps handle calls efficiently and makes customer service smoother, improving business communication.
Call forwarding is another useful feature. It automatically sends missed calls to another phone, like a mobile or home phone. This way, important calls aren’t missed, even when employees aren’t at their desks.
Integration
When picking a phone system, it’s important to check if it integrates well with other business tools you use. Integrations with apps like Microsoft Office, Google Workspace, or CRM platforms can boost productivity and make workflows easier across your team.
Voicemail Transcriptions
Voicemail transcription is a handy feature for busy professionals. It lets you read the content of a missed call instead of listening to the message. This saves time and helps you quickly decide how important the call is.
Mobile Compatibility
Mobile compatibility lets employees use the business phone system on any device so they can stay connected and respond to customer needs anytime, anywhere.
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Tips for Choosing the Right Phone System for Your Business
To help you make the best choice, we’ve compiled a list of tips to guide you through the process:
Assess Your Needs
Before you start looking at business phone systems, take a moment to figure out what your business really needs. Think about how big your team is, how many people will use the system, and what features you can’t do without.
Consider Your Budget
Check the costs carefully—like setup fees, monthly charges, and any extra costs for special features. It’ll help you pick something that fits your needs without overspending.
Desired Features
Start with a list of the features your business needs most. Think about things like call routing, call forwarding, integrations, voicemail transcription, and mobile compatibility. This will make it easier to narrow down your options and pick the best system for your business.
Provider Reputation
Check out the reputation of the phone system providers you’re considering. Look for positive reviews, testimonials, and case studies that show they care about their customers. Pick a provider with a good track record and experience helping businesses like yours.
Customer Support
Good customer support is really important when choosing a phone system provider. Look for one that offers 24/7 help, has friendly and knowledgeable staff, and provides support through phone, email, and live chat.
Remember, a reliable and knowledgeable support team plays a big role in making your phone system work smoothly. They can help with the setup and keep your business communications running well over time.
Compare Options Systematically
When comparing business phone systems, take a simple and organized approach. Use a spreadsheet to list the features, costs, and pros and cons of each option. This will help you see everything clearly and choose the best one for your needs.
Recommended Reading:
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The Benefits of Cloud-Based Phone Systems
A cloud-based phone system is a phone service that works over the internet instead of traditional phone lines. It’s hosted and managed online, so you don’t need special hardware or complicated setups.
You can make and receive calls from any device connected to the internet, like a computer, tablet, or smartphone. It also includes features like call forwarding, voicemail, and video calls. Since it’s online, you can use it from anywhere, making it great for remote work.
In recent years, cloud-based phone systems have become increasingly popular, offering a range of benefits that make them an attractive option for modern businesses. Here are a few reasons why:
Cost Effectiveness
Because these systems do not require any physical hardware or infrastructure, businesses can save money on upfront costs, maintenance, and upgrades. This makes cloud-based phone systems an appealing option for small businesses and startups looking to minimize expenses.
Scalability and Flexibility
As your business grows, you can easily add or remove users and features without the need for expensive hardware upgrades or additional phone lines. This flexibility lets you adjust your phone system as your needs change, keeping your communication smooth and reliable.
Easy Integration With Other Tools
Cloud-based phone systems can connect with other tools like CRM platforms, email, and customer support apps. This makes your workflows simpler and helps your team work more efficiently.
Upgradable
Finally, cloud-based phone systems are future-proof, as they can be easily updated and upgraded to keep pace with new technologies and communication trends. Choosing a cloud-based phone system helps your business stay flexible and ready for the future. It’s a smart move to keep up with changing times.
Upgrade your phone system and keep your team connected with Talkroute. View their pricing.
Why You Should Transition From Traditional Landlines to Modern Phone Systems
If your business still works with traditional landlines, perhaps it’s time for you to switch to modern phone systems. But why? Well, modern phone systems have a lot of perks that you’re missing out on, such as:
- Save money: Modern systems like VoIP usually cost less each month. Plus, there’s no need to deal with bulky hardware.
- Get more features: Enjoy tools like call forwarding, voicemail-to-text, and mobile apps that keep your team connected.
- Stay flexible: These systems work well for remote teams and allow you to stay connected no matter where you are.
- Improve communication: Better features mean smoother communication with customers and coworkers.
- Choose what fits your needs: You can compare providers, try different systems, and pick the one that works best for your business.
Recommended Reading:
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The Role of Mobile Devices in Business Phone Systems
Mobile devices are more important than ever for business phone systems. With remote work on the rise and employees needing to stay connected on the go, mobile compatibility has become a must-have feature for modern phone systems.
Mobile devices in business phone systems offer the following benefits:
- Connectivity: Employees can access their phone systems remotely, anytime, from any device. This helps them stay connected and handle customer needs, even if they’re not at their desks.
- Seamless communication and collaboration: Mobile devices allow employees to make and receive calls, send and receive text messages, access voicemail, forward calls, and engage in conference calling. This keeps communication and teamwork running smoothly.
If you want your business to stay connected and keep up, mobile compatibility is a must. With a system that works on mobile devices, your team can get stuff done from anywhere without missing a beat.
Security and Compliance Considerations
It’s important to think about security and compliance when choosing a business phone system.
Since phone calls often involve sensitive information, it’s important to have a phone system with strong security features. This helps protect your data and keeps you in line with any necessary regulations.
Why Data Encryption Matters
Look for data encryption in a phone system—it keeps your calls and messages safe from unauthorized access. Also, make sure it has authentication and access controls to stop anyone who shouldn’t be there from getting into your system or data.
Privacy Regulations
Along with security, think about privacy rules that apply to your business, like GDPR, HIPAA, or CCPA. Check if the phone system provider follows these regulations and any other laws that matter to your business.
Considering security and compliance when choosing a phone system helps keep your business communications safe and in line with regulations.
AI-Powered Fraud Detection
AI can make phone systems more secure and private. Cloud-based systems already use end-to-end encryption to protect customer data, but cybercriminals are also using AI to target businesses. As a response, businesses can also use AI to their advantage.
AI can help with the following:
- Spotting caller ID spoofing
- Respond to threats in real time
- Monitor phone networks for suspicious activity
- Analyzing call patterns and monitoring traffic
- Detecting credit card fraud
- Reviewing call content for risks
- Using call authentication systems
The Future of Business Phone Systems
As technology continues to advance and the way we communicate evolves, the future of business phone systems is an important topic to consider.
Let’s explore some emerging trends and technologies that are shaping the future of business communication and how these developments may impact your phone system.
Using Both Traditional and Cloud-Based Systems
Combining traditional and cloud-based systems is becoming more popular in 2025. Hybrid cloud integration lets businesses keep important on-site systems while using the flexibility and innovation of public cloud services.
It’s a smart way to modernize, allowing companies to update their IT systems step by step without major disruptions.
IoT Solutions
The Internet of Things (IoT) is becoming a bigger part of communication systems this year. It’s helping create smarter workplaces with features like automated meeting room management and environmental controls.
IoT also offers real-time data, like usage analytics, maintenance alerts, and resource tracking, giving businesses helpful insights to work more efficiently.
AI Integration
Artificial intelligence (AI) and machine learning are beginning to play a role in business phone systems, offering new capabilities such as AI-powered virtual receptionists and call centers.
Here are a few things AI can offer businesses today
- Customer Interaction: With AI tools, phone systems can transcribe calls in real time, enabling immediate follow-ups or action on customer requests. This improves response times and overall customer service quality.
- Call routing: AI can analyze caller information and route calls to the right department or agent without delays. This reduces wait times and ensures customers connect with the right person quickly.
- Task management: AI-integrated phone systems can trigger workflows based on calls. For instance, if a customer calls to request support, the system can create a task for the team and send reminders to ensure prompt resolution.
- Improved workflow: AI enables automated responses for common inquiries, such as account updates or service requests, freeing up agents for more complex issues.
- Emotional intelligence AI: Uses sentiment analysis to understand a customer’s tone and past interactions. It then suggests solutions to the support or sales agent, making it easier to meet the customer’s needs. These tools help employees answer questions, improve how they communicate, and learn from every call.
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Connect Anywhere, Anytime with Talkroute
Join over 100,000 businesses that trust Talkroute to stay connected—no matter where they are. From seamless business calls to powerful video meetings, Talkroute has everything you need to keep your team and customers connected.
Why Choose Talkroute?
- Call from anywhere: Use your desktop, browser, or smartphone to make and receive business calls without revealing your personal number.
- Text your way to success: Engage customers with SMS and MMS messages directly from your business numbers.
- Collaborate with video: Host video meetings with up to 100 participants and share ideas in real time.
- Manage voicemail effortlessly: Access, organize, and read your voicemail from anywhere.
- Fully customizable features: Adjust call routing, greetings, and schedules in seconds.
Your modern phone system is just a click away—Start your free trial today! If you have any inquiries, you can chat, email, or call 1.800.747.2140
FAQs About Business Phone System Comparison
What is the cheapest way to have a business phone?
The cheapest way to have a business phone system is to use a VoIP service. VoIP systems start at around $13-$25 per user per month. Services like Talkroute charge $19 per month and $5 for each additional user. These systems include features like call recording, auto attendants, and team messaging, making them cost-effective compared to traditional office phone systems.
How much does a phone system cost for a small business?
A small business phone system can cost as low as $13-$25 per user per month for VoIP phone systems. For a basic analog PBX setup, costs can reach up to $2,000 for a two-line desk phone system. Providers like Talkroute offer plans starting at $19 per month, with additional user fees of $5 per month. Features like mobile and desktop apps, unlimited calling, and auto attendants are often included.
What is the best business phone provider?
Top providers for business phone systems in 2023 include Talkroute, RingCentral, Verizon Wireless, Google Voice, AT&T Wireless, and T-Mobile. These companies offer reliable VoIP phone systems, toll-free phone numbers, and advanced features like team messaging and desktop apps to meet a variety of business needs.
What is the difference between a traditional landline and a VoIP phone system?
A traditional office phone system uses copper wiring to connect calls, while a VoIP phone system transmits calls over the Internet. VoIP systems are more affordable and scalable and include features like call recording and auto attendants. In contrast, traditional landlines are less flexible and lack many of the advanced options most business phone systems offer today.
What’s the difference between a business and a residential phone line?
A business phone system is designed for managing business calls and often includes features like unlimited calling, team messaging, call recording, and auto attendants. Business lines also provide options for toll-free phone numbers and integration with mobile devices and desktop apps. Residential phone lines are more basic, focusing solely on personal use without these advanced functionalities.
How do I set up a small business phone system?
Activate your account, create a voicemail greeting, set business hours, download desktop and mobile apps, specify caller ID, import contacts, invite team, and turn on auto-recordings to set up a small business phone system.
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 100k entrepreneurs to start, run, and grow their businesses.