The right phone system for a small business is the one that fits how your team actually works: where people sit, how customers call you, and what should happen when nobody can answer. For most Australian small businesses today, that means a cloud phone system (a hosted PBX) with apps and desk phones where they are needed. Some very small teams are fine on mobiles alone, and businesses that already own a capable phone system may only need SIP trunks.
This guide walks through the decisions in order, compares the main options, and lists the questions to ask any provider before you sign.
Key takeaways
- Start with how your team works and how calls come in, not with a feature list.
- For most small businesses, a cloud phone system gives the best mix of features, flexibility and low upfront cost.
- Keep your existing numbers: local, 1300 and 1800 numbers can usually move with you.
- Check your network before you switch. Most call quality problems start inside the office.
- Ask who fixes problems, what the contract commits you to and how the system is secured.
Step 1: Work out how your team works
Write down who needs to make and take business calls, and where they do it. A typical small business has a mix of:
- Office staff at a desk most of the day, who suit a desk phone or a headset and desktop app
- Staff who move around a site, such as a warehouse, workshop or clinic, who suit a cordless phone
- Remote and hybrid staff, who need the business number on a laptop or mobile at home
- Staff on the road, such as tradies, sales reps and owners, who need calls on their mobile without giving out a personal number
If everyone is always in one office, almost any system will work. The more your team is spread out, the more a cloud system with good apps pays off.
Step 2: Map how calls come in, and which numbers to keep
Think about the journey of a customer’s call. Who should answer first? What happens if they are busy? What happens after hours, on public holidays, or when the office is closed for the Christmas break?
List every number you use now: your main local number, any 1300 or 1800 number, fax lines and direct numbers staff have given to clients. ACMA confirms you can usually keep your phone number when you change telcos, including local, 1300 and 1800 numbers. Keep your current service active until the port is complete. If you want a national presence or a number that is easy to remember, our business numbers guide explains the options.
Step 3: Decide which features actually matter
Most business phone systems list dozens of features. Pick the handful you will use every week:
- Queues and ring groups so calls ring several people, or wait in line, instead of going to voicemail
- IVR menus (“press 1 for sales”) if calls need sorting between teams
- Business-hours and public-holiday routing so after-hours calls go to voicemail, a mobile or an answering option automatically
- Voicemail to email, ideally with a text transcript
- Call recording for training or disputes. Check what you need to tell callers first; the rules vary between states, so get advice for your situation.
- An AI receptionist that answers when you can’t, handles common questions and puts callers through
- Desktop and mobile apps so the business number goes wherever your staff do
- Microsoft 365 and CRM integrations so you can see who is calling and click to call
Be wary of paying for features nobody will set up. A simple system configured well beats a sophisticated one that nobody understands.
Step 4: Compare your options
Small businesses usually choose between three approaches. Our phone systems page compares the two we offer in more detail.
| Mobiles only | Cloud phone system (hosted PBX) | SIP trunks to an on-premise system | |
|---|---|---|---|
| Best for | Sole traders and very small teams who are rarely at a desk | Most small businesses, including remote and multi-site teams | Businesses that already own a capable phone system |
| Upfront cost | Low | Low: phones if needed, plus setup | Higher if you need to buy or upgrade the system |
| Features | Limited: no real queues, menus or shared reporting | Queues, menus, recording, apps and integrations | Depends on your system |
| Business number | Hard to share one number across the team | One number, answered on any device | One number, answered on your system’s phones |
| Who maintains it | Each person manages their own phone | The provider | You or your phone system maintainer |
| If the office internet drops | Not affected | Calls divert to mobiles; staff can use the mobile app | Depends on your provider’s divert options |
A hosted PBX suits most small businesses because there is no phone system to buy and you add or remove users as you grow. SIP trunking makes sense if you have a system with years of life left. If you want the background first, start with what VoIP is and how it works.
Step 5: Choose hardware, apps or both
You don’t need a desk phone for everyone. Match the device to the person:
- Desk phones for reception and anyone on the phone much of the day. Physical buttons make transfers and parking calls quicker.
- Cordless DECT phones for people who move around a site.
- Headsets and apps for staff who work at a computer, and mobile apps for those on the road.
Ask whether you can use phones you already own, and whether new ones arrive configured and ready to plug in. You can browse desk phones, cordless phones and headsets in our shop.
Step 6: Check your network before you commit
A cloud phone system is only as good as the network it runs on. Voice needs little bandwidth, but it needs a stable connection and a router that treats it properly. The common problems are router settings such as SIP ALG, no priority for voice when the connection is busy, patchy Wi-Fi and firewalls that drop calls.
Also check anything else that uses your phone lines, such as back-to-base alarms, EFTPOS terminals or a fax machine, before old lines are cancelled. Our guide to whether your network is ready for VoIP covers the checks in detail.
VoIP phones need power and internet at your site. ACMA advises that most NBN services won’t work in a power outage, so you won’t be able to call 000 from them. Keep a charged mobile on hand, and ask each provider how 000 calls work on their service.
Questions to ask any phone system provider
- Who fixes it when something goes wrong? Will they troubleshoot your network and firewall, or tell you to call your IT provider? What are the support hours, and are they in Australia?
- What is included in the price? Users, calls, numbers, phones, setup, porting and features such as recording or AI. Which call types cost extra?
- What is the contract? Minimum term, notice period, exit fees, and whether leased phones lock you in.
- Can I take my numbers with me if I leave? The answer should be yes, without obstacles.
- What happens when the internet or power goes down? Can calls divert to mobiles automatically, and can staff answer on a mobile app?
- How is the system secured? Ask about strong passwords and PINs, international call barring, alerts for unusual calls and admin access. Optus’s PBX fraud guide notes that businesses are responsible for the security of their own phone system, so this matters.
- How easy is it to change things? Can you update opening hours, greetings and call routing yourself, and add users without a service call?
Red flags
- Pricing you can only get after a sales call, or quotes that don’t break down what is included
- Long contracts tied to leased hardware you can’t use elsewhere
- Vague answers about who owns your numbers or how to move them
- No offer to check your network before you switch
- Support that is only a ticket queue, with no one who understands networks
- Claims of “guaranteed” call quality over an internet connection nobody has looked at
How CloudLine helps you choose
CloudLine is an Australian business phone provider based in Brendale, north of Brisbane, and part of an ISO 27001 certified IT company. We start with how your team works and how calls come in, then recommend a hosted PBX, SIP trunks or a mix. Before you switch, we can check your network and firewall so your phones work properly from the first day.
We port your numbers, supply phones ready to plug in, and set up your call flow with you, including business hours, queues and an AI receptionist if it suits. Support is from our own team, Monday to Friday, 8am to 5pm.
Frequently asked questions
What is the best phone system for a small business?
There is no single best system. For most small businesses, a cloud phone system with desktop and mobile apps is the most flexible choice. Sole traders may be fine with a mobile, and businesses with a capable existing system may only need SIP trunks.
Is a cloud phone system reliable?
The phone system itself runs in a data centre, so it keeps working if your office has a problem. The weak points are usually your internet connection and office network. Choose a system that can divert calls to mobiles automatically and get your network checked before you switch.
Can my staff use their own mobiles?
Yes. With a mobile app, staff can make and take calls on the business number from their own phone, and callers see the business number rather than a personal one.
Do I need new phones?
Not necessarily. Some staff can use apps and a headset. If you have IP phones already, ask whether they are supported models. Old analogue phones and handsets from a proprietary system usually cannot be reused directly.
How long does it take to switch?
Setting up the system can be quick. Porting your numbers takes longer, especially for a range of numbers, so start the port early and keep your old service active until it completes.
Not sure which option fits? Request a quote with your team size, locations and numbers, and we’ll recommend a setup. Or call us on 1800 256 830.
