Feb 17, 2023 / By Sofia Jackob

Understanding Phone Extension and Use of Extension Numbers

What is a Phone Extension

A phone extension can make every call fast and easy, allowing you to reach a specific person immediately. This internal code is assigned to an individual in your team or department, meaning it is easier to know who you will speak with when you dial a number. In addition, having a phone number with an extension enables smoother communication, whether they are an internal or external caller.

Reaching a specific person from a different department or team is easy with a phone extension. It is a unique number inside a company that allows an employee to receive and route calls. Extensions effectively improve communication within a business, making it easier for your clients and team members to connect. Find out more about the purpose & use of extension numbers here!

Understanding Phone Extension and Use of Extension Numbers

Knowing the idea behind phone extension will help you improve the efficiency of your business communication and reduce the time spent on calls that are either on hold or being transferred. With a phone extension, you can reach the correct person or team regardless of the phone system you are using or what industry you are in.

What is a phone extension?

A phone extension is a short internal code used to reach individuals within a company. It is assigned to an individual, group, team, or department for a fast and reachable call. The extension numbers can be used for internal and external callers. After dialing the main business number, the internal caller can punch in the extension to connect directly with the desired individual or department.

How Does a Phone Extension Work?

A phone extension works relatively simply. A specific number is assigned to your team members or departments, making connecting with a particular member easier. For example, if you assign 'team member A' with a phone extension number 0001, you can dial the four digits to speak with her directly. Or if you have assigned extension numbers to departments, you add the department extension with the specific number of the team member (e.g., 00-0001). Each employee has a unique extension that can be used for direct dialing or voicemail.

The Difference between Virtual Numbers and Extensions

A virtual number and phone number with an extension each forward calls to other endpoints. They are not attached to a specific location or zip code, making them an ideal choice for personal and business use. In addition, both virtual numbers and extensions are created to simplify your work when optimizing the structure of your business communication. Here are some of the things that you should take note of concerning the differences between the tools:


Virtual numbers are more affordable than phone systems with extensions, as you are not required to purchase any additional hardware or PBX systems. There are instances when phone number extensions are free, but these free offers typically come with limitations.


Virtual phone numbers have a wide range of features for business communication, including call forwarding and call screening. Extensions have limited features, depending on the PBX system they are connected to.

Internet Protocol address

An IP address is where a virtual phone number is associated. On the other hand, a phone extension number is part of the VoIP phone system, which means it lacks any ties to the Internet Protocol.

How to Set up a Phone Extension?

Setting up a phone extension depends on what type of telephone system you are using. If you are using a reliable system, you can expect a smooth process. You may experience difficulty during the setup process if your system is unreliable and outdated. Here are the steps to successfully set up an extension on your phone.

Choose your business phone system and plan.

The first step to setting up a phone extension is determining what system and plan you should choose for your business. There are many providers out there, so make sure to consider which system will best suit your business.

Install and configure the PBX system.

If you choose an on-premise office PBX, you will need to install the necessary hardware in your office. If you choose a hosted PBX system, let your provider do the installation so you can easily use your business line extension.

Create and assign phone extensions.

After you have installed and configured your PBX system, it's time to create phone extensions for every user in your business. You can start by assigning a unique extension number, configuring a voicemail, and setting up the rules of the call routing feature.

Begin using the phone extension number.

Once you're done with the setup process, you can try using the numbers by calling or answering calls from your team members. This way, you can test if the phone extensions are working correctly and assigned to the correct person.

How to use an extension number to improve business communication?

A phone extension number can help your business improve its communication. Below are some benefits that an extension number can bring to your business.

Assign extension numbers to individual employees

Assigning numbers to your employees makes it easier for your team to communicate and for your clients to reach them. That is why setting up a phone extension allows improved business communication.

Assign extension numbers to departments

Aside from assigning extensions to individuals, assigning an extension for every department can also be beneficial. Then, when customers want to reach a specific department, it will be easier to dial them up since there is a number allocated for them.

Set up virtual extensions

Virtual extensions are helpful for employees who work remotely. Setting up an extension will allow your team to reach each other even if they work from home or overseas.

Use extension to route call

One of the best uses of a business line extension is being able to route calls to different locations. If you have a business in various places, it will be easy for you to transfer calls from one location to another with phone extension numbers.

What are the benefits of getting a phone extension from Callture?

Callture is a business phone provider that delivers an excellent phone system that never disappoints. We have provided you with several reasons why you should consider us for your phone extension needs.

Customizable extension number

With Callture, you can customize your extensions based on your individual or business needs. Callture allows you to choose the number of digits in an extension and to whom the extension will be assigned.

Advanced call routing features

With phone extensions from Callture, our advanced features will effectively route calls the way you want. It will also be easier for you to set up your customized greetings and ensure that calls are handled well.


The phone extension feature that Callture has is indeed reliable. Your business communication should be as smooth as possible with Callture's reliable extension service.

In conclusion, there are a lot of benefits that a phone extension can offer to individuals and businesses. When you add an extension to your phone number, you make an excellent decision for your business. Callture will assist you with business phone system functions and features such as the phone extension and click-to-dial extension. We have the tools and capabilities to help your business improve communication and streamline your every operation. So, if you want to elevate your business through advanced phone features and functions, Callture is the business phone provider you should choose for your phone extension needs.

What is a Phone Extension
Frequently Asked Questions (FAQs)

The primary purpose of phone extensions is to improve your communication within and beyond the company. An extension number will help you transfer calls quickly without worrying about your caller's wait time.

Adding an extension can be done in five easy steps:

  • Sign in to the admin portal of your chosen business phone system.
  • Select the Add Extension option.
  • Choose what extension type you need.
  • Fill out the form and save it.
  • Give the user their assigned extension.

The usual phone extension consists of three or four digits. This short internal code identifies every company's individual, team, or department. Generally, the first two digits refer to the department a person is in, and the second one refers to the specific person or employee.

Have a Callture specialist contact you today!

Note: The listed features may not be included in all packages and pricing options and are subject to availability.