This is where a business phone system comes into play. It allows an organization to interconnect telephone lines to form its own small system. In this way, employees can share phone lines since not everyone would use the phone simultaneously. These phone systems also offer basic business features like call forwarding, call logging, and phone directories. As a result, many employees can share a handful of phone lines with a business phone system, even when everyone has their phone number.

Types of Business Phone Systems

Telephone technology has changed significantly since the turn of the century. Even in the era of landlines, businesses could choose from various systems to manage their phones. In 2020, companies can opt for a digital strategy tailor to their business needs and requirements .

Startups, Entrepreneurs, and Contractors

Startups, freelancers, and others running their own business may not need a whole business phone system, especially if the company has only 1 or 2 employees. So while they need professional services like music on hold, call forwarding, or voice mail, they don’t need to manage multiple extensions and numbers.

As a result, startups and freelancers often use home phone service as it meets most of their requirements. As the business grows, it can be upgrade to an enterprise grade system.

Small and Medium Businesses

Once a company grows to 3 or more workers, it needs a more sophisticated system. Before the launch of VoIP, businesses had to purchase a Private Branch Exchange (PBX) and business services from an operator. These were expensive and unaffordable for many small business owners.

Today’s VoIP-based phone systems are much less expensive and are easily accessible to all businesses. Businesses can purchase their own IP-PBX (Internet-based PBX) and SIP Trunk to connect those systems. Alternatively, they can also purchase hosted phone services from an experienced third-party provider. This option is perhaps the most popular among small and medium-sized organizations today.

Large Corporations

Generally, large companies can purchase and maintain their phone systems. However, any large company would jump at the opportunity to use more efficient and effective technology that is also less expensive. Many organizations want to control their phones as it is a critical part of their communication system.

Purchasing and maintaining a quality business phone system is well within the budget of a large company. Therefore, many organizations use SIP Trunks and IP-PBX methods to create their digital phone systems. In addition, as providers improve their infrastructure and build more robust services, even the most prominent companies are turning to hosted VoIP phone services.

What Can A VoIP Business Phone System do?

A  VoIP business phone system is an excellent upgrade from the previous generation of phone technology. A VoIP system can do just about everything a landline phone can do and much more than wasn’t possible with previous technology.

Consolidate your Network

The first major update is that a VoIP phone system does not need a separate network. Instead, it converts the human voice into digital packets that can send over the Internet just like any other data (email, images, documents, etc.) This allows companies to eliminate physical cables. A robust data network and Wi-Fi, where needed, are all you need to manage business communications, including voice, text and video.

Reduce Phone Bills

Since VoIP systems use the Internet, providers do not have to pay access charges for the traditional PSTN system. As a result, providers do not have to pay the costs to maintain a physical network. Instead, they pass these savings on to their customer. Likewise, business owners do not have to pay anything for a call exclusively over the Internet.

It means that all internal calls from employees are completely free, regardless of where they are located. In addition, international calls are much less expensive as you only pay for part of the call as it travels through the PSTN at some point. Although there are other costs associated with a VoIP phone system, most companies will see a drastic reduction in their monthly phone bill after switching to VoIP.

Without Maintenance

All companies have it. Whether a single employee or a large department, you need someone to manage the phone system. With VoIP, that is no longer the case. You don’t have to buy any equipment or maintain anything. The provider takes care of everything from security to hardware maintenance. Plus, you get regular updates and new features delivered online without any downtime. Is it any wonder businesses are upgrading to a VoIP business phone system en masse?

VoIP Business Phone System Features

Online Dashboard

A VoIP business phone system will handle all your incoming and outgoing calls. You can configure the system to meet the needs of your business through an online panel. The provider offers all business phone services through its data network. It means you don’t have to wait days to add a number, test a new feature, or make other necessary changes to the system.

Digital Fax And Analog Functions

Even today, many businesses use fax machines to send essential documents. VoIP systems offer digital faxing, eliminating a separate fax machine in the office. Instead, users can send and receive faxes to their email inbox, printing any document only when needed. Many good VoIP services also support other legacy features, such as PSTN access.

Visual Voicemail, Auto Attendant, Call Management, Etc.

Most reputable providers offer many call routing and management features like an auto attendant, call transfer, multiple devices, etc. Some providers bundle features and charge to upgrade to the next level. Others offer unlimited access to all features at a cost per user. You can select the appropriate option for your needs.

You can configure and disable these features through the control panel, making it easy for anyone to manage the system effectively.

Unified Communication

Perhaps the best part of a VoIP business phone system is providing a foundation for more sophisticated features. Businesses can bring all of their disparate communication channels together under one roof. Imagine a design that looks and works the same everywhere: on a desktop or a mobile device. Users do not have to switch between multiple application and windows.

VoIP business phone systems offer more than just voice. Use instant messages, text messages, video calls, group calls, virtual meetings, and even conduct training sessions for international teams. The options are endless when you opt for VoIP phone service.


A business phone system is a multiline telephone system typically used in business environments, encompassing systems ranging in technology from the key telephone system to the private branch exchange.

Also Read: Single Sign-On: What is it and How Can it Benefit your Company?