Top Business VoIP Providers [Tested & Compared]

What is Business VoIP?

Business VoIP is a modern cloud communication technology that makes and receives phone calls over the Internet instead of the wired PSTN network. Teams can access their VoIP-powered business phone system from anywhere, on any device with an Internet connection.

Business VoIP requires little to no hardware and has a fast, simple plug-and-play installation process. High-quality business VoIP providers also grant access to additional communication channels like video conferencing, SMS and MMS messaging, and chat messaging.

Packed with advanced phone system features necessary to operate small to medium businesses, such as hosted PBX capabilities, desk-to-desk calling, automated attendant systems, call routing, and even music-on-hold, business VoIP technology makes it easy for any company to operate with the same level of professionalism customers expect from large scale enterprise systems. Business VoIP services also include Unified Communication solutions to empower the mobility and flexibility needed for any size business.

With inexpensive, feature-filled phone solutions, your business can operate at a high level without worrying about the cost.

Most importantly, VoIP offers advanced phone system features such as IVR, voicemail transcription, call routing, and call recording.

Business VoIP unifies global workforces, streamlining remote, blended, and in-house communication.

 

How Does Business VoIP Work?

Business VoIP uses codecs to compress and convert voice audio into digital data packets that travel to the recipient via the Internet. The diagram below explains how the codecs work:

Once these data packets reach their destination, they decompress and convert into normal voice audio.

For a more detailed explanation, check out our guide on VoIP and how it works.

 

Small Business VoIP Essential Features

The VoIP features shortlisted below are the most important ones to look for – don’t bother with a business VoIP provider that doesn’t offer them.

 

Standard Call Management Features

Quality VoIP companies should offer all of the below call management features on their basic plan.

• Call Hold: Agents place callers on a brief hold to accept/make another phone call or get clarification from a colleague
• Call Waiting: Notifies an agent currently taking a call of another inbound call to their number.
• Call Transfer: Agents can transfer their current caller to another agent, department, or higher-up without ending the call.
• Hot Desking: Enables any agent to take/make business telephone calls on any desk on an as-needed basis.
• Call Parking: Agents can place active calls in a virtual parking lot, where any other available agent can take them over. 
• Call Forwarding: If the first phone number goes unanswered, call forwarding automatically forwards calls to additional, preset phone numbers, as shown in the image below:
• Call Blocking: Anonymously block inbound calls from suspicious, spam, or unwanted phone numbers.
• Audio Conferencing: Allows 3+ users to communicate via telephone simultaneously

 

Now let’s take a look at some of the more advanced features to look for.

Voicemail Transcription

Voicemail transcription converts audio voicemail messages into text form, allowing users to read voice messages directly in the app or have them emailed or texted to you (the message audio is still available). Take a look at the example below of a transcribed voicemail within Grasshopper’s app:

 

 

This feature makes it easy to prioritize which calls to return first, review messages from VIP clients during meetings, and saves time.

 

Call Routing 

Call routing is a call management strategy where inbound calls are distributed to specific agents or departments based on pre-set call paths, agent availability, and the caller’s answers to IVR prompts.

There are numerous call routing options, but we’ve outlined the most popular in the image below:

 

Call Monitoring and Call Recording 

Call recording is a business VoIP feature that automatically records telephone calls between agents and customers or on demand.

In most cases, callers must be notified of the recording, but check your state’s call recording laws to be sure.

Once the recording is complete, it’s automatically stored in a searchable cloud-based database where users can review and categorize them. Agent and customer names, call duration, contact information, and if the call was inbound or outbound are also included in the recording details.

 

Look for providers that let users pause, isolate, fast forward and resume call recording.

Most VoIP companies also offer call recording transcription, which transcribes and displays recorded calls in text for faster review.

Call monitoring allows managers to “listen in” on live calls between agents and customers. Call whisper lets managers coach agents in real-time during an active sales call (without the customer being able to hear them, of course.) Call barge means managers can instantly take over the agent’s call if it becomes clear their assistance is needed.

 

Interactive Voice Response (IVR)

IVR (Interactive Voice Response) is an automated call menu with pre-recorded voice prompts that customers enter or speak their responses into to direct their calls.

A common IVR prompt is, “To speak to the billing department, press 2; for sales, press 3; to track an order, press 4; to repeat these options, press 5.”

The IVR system then uses Automatic Call Distribution (ACD) to send callers to the correct agent.

IVR is commonly used for making payments, checking account balances, figuring out who to speak to, entering survey responses, or scheduling appointments.

Its goal is to increase customer self-service and leave agents free to assist higher-level callers.

 

 

Call Analytics

Business VoIP providers offer basic to advanced real-time and historical caller analytics that give insight into agent activity and productivity, call volume, call trends, and more.

Reports can be run and exported at automatic intervals or on an ad-hoc basis with pre-made or customizable reporting templates. Individual agents, specific departments, or your entire small business can easily be monitored.

 

Common VoIP calling analytics include:

• Number of daily, weekly, and monthly calls
• Inbound: Outbound call ratio
• The average number of missed/unanswered calls
• Average agent talk time
• First Call Resolution rates (FCR)
• Cost per Call
• Customer Satisfaction (CSAT)
• Average speed of Answer (ASA)
• Average call handling time

 

Key Benefits of Using Business VoIP Phone Service

Aside from the innumerable benefits of the above features, there are plenty of other ways business phone systems give you an advantage.

Let’s look at the five best business VoIP benefits now.

 

1. Cost Savings

Business VoIP is 30-50% cheaper than traditional landline phone service.

In addition to the affordability, VoIP uses softphones and mobile apps to work with existing hardware like desktop and laptop computers, tablets, and smartphones. Though VoIP-enabled desk phones are also available, most small businesses use the hardware they already have.

Better still, VoIP drastically reduces the expense of long-distance calling, as VoIP manages calls over the Internet.

Cloud-based VoIP also lowers monthly maintenance and upgrade costs, as the provider, not the end user, is responsible for hosting and monitoring the server.  This also means a simpler – and cheaper – installation and setup process.

 

2. Flexibility and Mobility

Today’s workforce expects to work from anywhere, on their schedule – which means customers also expect to be able to connect to your business when they need to.

The flexibility and mobility of a virtual phone make this possible, thanks to features like automatic call forwarding and Find Me, Follow Me.

If the agent doesn’t answer their primary business phone number, the call is forwarded to their smartphone, home phone, voicemail, or even to another agent. Customers don’t have to hang up the phone and redial, as call forwarding is automatic.

 

3. Automation and Self Service

Customers today want fast answers and a resolution the first time they reach out to your business.

However, given that small businesses likely have a limited number of available agents – let alone enough to offer 24/7 customer support – this can be a challenge.

The solution?

Business VoIP automation features like auto-attendants, pre-recorded IVR call menus, Natural Language Processing (NLP), call routing/forwarding, sentiment analysis, customer callbacks, and automated reminder notifications.

This automation provides robust customer self-service options while keeping live agents free to make sales calls or deal with more complicated, urgent issues.

 

4. Multiple Business Phone Numbers 

A VoIP phone number lets business owners and team members keep their personal telephone numbers private. VoIP companies offer four types of virtual numbers: local, toll-free, toll-free vanity numbers, and international.

Local numbers let businesses purchase numbers from any area code – even if the business isn’t located within that region. These numbers help businesses to establish a local presence, winning consumer trust and increasing the likelihood that the recipient will answer the call.

Toll-free numbers add further legitimacy to your business and ensure consumers can contact you without incurring any call costs. Common toll-free number prefixes include 800, 888, 877, 866, 855, etc.

Vanity phone numbers begin with one of the above toll-free number prefixes but spell out relevant words or phrases like 1-800-TOWMYCAR or 888-FLOWERS. Vanity numbers are easy to remember, strengthen branding, and are free to the caller.

International phone numbers give businesses a local presence abroad, making it easier to expand to foreign markets.

 

5. Scalability

The scalability of business VoIP services means you won’t be forced to pay for features you don’t yet need – but you can easily add them when you do.

Bundled plans offer tier-based, month-to-month pricing with unlimited calling in the United States and Canada.

Business VoIP providers also integrate with third-party business communication, CRM platforms, and collaboration tools, eliminating the need to purchase other software.

In addition to bundled plans, a la carte plans and completely customizable VoIP solutions for business are available.

With VoIP, adding more users, extensions, or phone numbers is simple – log into your admin portal and add them directly on the provider’s website.

 

What to Look for in VoIP for Small Business

Though we’ll discuss how to choose the best VoIP for small businesses later in this post, there are a few things that every quality business VoIP provider should offer.

Let’s review them below.

 

Guaranteed Uptime of At Least 99.9%

“Uptime” is the amount of time per year that your VoIP software is fully functioning, online, and offering all the services promised by the provider.

Though 99.9% is the minimum, 99.999% uptime is the gold standard. For context, a 99.9% uptime equals about 44 minutes of annual downtime, while a 99.999% uptime equals just over 5 minutes a year.

 

Strong Security Measures

Small businesses are particularly vulnerable to VoIP and cybersecurity threats. While VoIP phones are more secure than landlines, you still need to know how to protect your business VoIP service.

First, ensure the provider conducts third-party security audits – meaning that a body outside the company evaluates the platform’s security standards. Security certifications include SOC 2 Type 2 Compliance, HITRUST, or ISO/IEC.

Your industry’s regulatory bodies may require other certifications like PCI, HIPAA, FINRA, and GDPR compliance.

Also, look for two-factor authentication (2FA), Single Sign-On (SSO), and end-to-end encryption (E2EE.)

Finally, be sure that the provider offers additional security settings, like robocall blocking, spam protection, network monitoring and redundancy, password protection, and access control.

Check out our guide to VoIP security for more information.

 

Reasonable Costs and Fees

In addition to the cost of your monthly service plans, business VoIP providers are legally allowed to charge certain fees and taxes.

However, unscrupulous providers will attempt to overcharge you, counting on the fact that you won’t notice or won’t know the legality.

Common legal fees include:

• E911 Fees
• Universal Services Fund Fees
• Federal, State, and Local Taxes
• Number Porting Fees (most providers offer porting for free)
• Gross Revenue Surcharge
• Intercarrier Compensation

 

Red Flag fees to watch for include:

• Hefty early contract termination fees
• Hidden “Add-on Feature” fees
• RCIP Fees
• “Service,” “Support,” or “Administrative” Fees

Our VoIP taxes and fees guide will help you to ensure you’re working with a fair, legitimate provider.

 

Reliable Support

When you have a problem with your business VoIP phone service, you don’t want to have to wait to get help.

When considering providers, look for 24/7/365 support on at least one channel (though 24/7 phone support is ideal, most providers only offer 24/7 support via live web chat.)

In addition to phone and web chat support, ask about email support, online knowledge databases, ticket requests and support in-portal, and any other support channel you may need.

Ask how long the provider responds to and resolves a support request.

Though most providers offer paid support plans to allow users to slip to the front of the support queue or receive other forms of priority support, that doesn’t mean that standard support users should be satisfied with subpar service.

 

Ease of Use 

Finally, evaluate the VoIP phone system’s overall intuitiveness and ease of use.

While it’s normal to encounter some learning curve when using any new business software, ensure that the interface is uncluttered, customizable, and makes sense.

Examine the dashboard sidebars, icons, and whether or not call flow can be edited via a drag-and-drop tool. This is where a free trial of a business VoIP service platform comes in particularly handy. Have team members try it out and offer feedback as to whether or not they feel it’s something they can learn to use.

Most providers offer some form of employee training, whether pre-recorded video tutorials, training webinars, in-person training, or customized training programs.

 

How to Choose the Best Business VoIP Provider

When shopping for a small business VoIP service, knowing what you need ahead of time makes the transition fast, easy, and cost-effective.

 

Step 1: Review Your Business Basics

The most important thing to evaluate when shopping for business VoIP is whether or not the provider is the right fit for your specific business. 

Each business has unique needs, short and long-term goals, budget, and customer base. There is no “one-size-fits-all” VoIP platform.

When choosing your business VoIP service, consider the following factors:

• Your business size and industry
• Your workforce type (Remote, in-house, blended, full-time, part-time)
• Your security needs and regulatory requirements
• Your target market and customer base
• Your long and short-term goals
• Your budget
• Your anticipated VoIP usage

Remember: the above factors don’t apply to your small business as it is now but to how you want it to look in the future.

Find a provider that can grow with you.

 

Step 2: Check Hardware and Software Compatibility 

Most providers offer native or compatible VoIP hardware (like desk phones, headsets, and speakers) for purchase on their websites.

But if you already have hardware or VoIP phones from reputable brands like Poly, Yealinik, and Cisco, make sure it’s compatible with the provider.

In addition to hardware compatibility, ensure the provider can integrate with any existing third-party software you plan to continue using. Most providers offer an extensive searchable app gallery – explore it before committing.

Even if native third-party integration isn’t available, providers should offer customizable APIs and other developer tools that allow you to integrate or add new functionalities to your business VoIP phone service.

 

Step 3: Shop By Value, Not Price  

Business VoIP has an average price range of $15.00-$25.00 per user per month.

While it’s tempting to automatically look for providers on the more affordable end, the overall value is the real metric to consider.

Often, cheaper plans lack essential features like SMS texting, call recording, or detailed analytics. These features are available – but only for a hefty add-on price. In most cases, it’s cheaper to upgrade to a higher tier than to purchase a la carte add-ons for the most affordable plan.

Decide which features your team has to have now, which ones you can wait to scale up to in the future, and which ones you’re unlikely ever to need. Then, pick your plan accordingly.

While there is a bigger initial investment if your business can afford to purchase more complete plans that already include the features your team – and customers – need.

 

Step 4: Do Your Research 

You’ll need to do some outside research to ensure the VoIP companies on your shortlist are as great as you think they are.

Read reviews, ask the provider if you can speak to an existing customer, and compare available features and pricing with the platform’s biggest competitors.

Finding unbiased opinions may require some extra digging, but it’s the best way to ensure you choose the best business VoIP phone service.

 

Here Are Some Questions to Ask a Potential Business VoIP Provider:

• What are the startup & recurring costs?
• Is there a money-back guarantee?
• Can you port phone numbers? Costs involved?
• Is there a contract? Are there cancelation fees? Know what the cancelation process is like.
• Are there any hidden fees?
• Which calling features are included, and which features cost extra?
• Is there international calling?
• What kind of support is available?
• Do you offer E911? Costs involved?
• Do you have a mobile app?
• What is the process for upgrading or downgrading plans?

 

Business VoIP FAQs

Below, we’ve answered some of the most common questions shoppers may have: