How to Choose a Password Manager for Your Business

A good password manager can improve security across your team without adding friction. But with so many options available, it can be hard to know which one to choose.

But first, what exactly is a password manager?  A password manager is a tool that stores and encrypts your login information—usernames, passwords, and sometimes secure notes—so you don’t have to remember or reuse credentials. It can automatically fill in login fields, generate strong passwords, and securely share access when needed.

Here are seven things to look for when picking a password manager for your business:

1. Works across all devices your team uses

Your team will need access on desktops, laptops, and phones. Make sure the tool works reliably on each.

2. Easy to use (or it won’t get used)

The best security tools are the ones your team actually uses. Look for simple interfaces, auto-fill options, and easy onboarding.

3. Allows secure sharing of logins

Sometimes teams need to share access to tools. Choose a manager that lets you share passwords without revealing them—and lets you control who can see what.

4. Offers admin features for managing access

You should be able to add or remove users, see activity logs, and assign access by role or department. This keeps things organized as your team grows.

5. Includes zero-knowledge encryption

This means the provider can’t see your data—even if they wanted to. It’s an important layer of protection in case of a breach. Some encrypt data locally before syncing, while others rely on cloud-based encryption. Be sure you’re happy with how encryption is managed when you make your choice.

6. Meets your compliance requirements

If your business is subject to industry-specific compliance standards make sure the password manager meets those requirements and can provide documentation if needed.

7. Has a clear security track record

Before committing, check for any recent security incidents, how they were handled, and whether the provider publishes third-party audits or regular transparency reports. Password managers are increasingly the target of cyber criminals so doing your due diligence can help you avoid future risks.

Common Options with Business-Level Security

Here are a few widely used password managers that include features businesses typically look for (as of April 2025):

• 1Password Business – Easy to use, strong admin tools, and great for teams that need to share logins securely.
• Bitwarden Teams or Enterprise – Open-source with strong encryption and flexible pricing. Offers self-hosting for added control.
• Dashlane Business – Simple interface, built-in VPN, and smart reporting features.
• NordPass Business – Backed by the team behind NordVPN, it offers strong encryption, an intuitive interface, and password health reports for teams.  

All of these options offer zero-knowledge encryption, cross-device syncing, and centralized admin controls—essentials for business use.  Talk to your IT provider to help decide which ones is best for your business.  

Is a Password Manager the Same as Single Sign-On?

Not quite. A password manager stores and fills in your login credentials for different accounts. Single sign-on (SSO) lets users log in once to access multiple systems without entering credentials again.

Password managers work well when your business uses a lot of different platforms that don’t support SSO. SSO is ideal for businesses using tools that integrate under one identity provider (like Microsoft or Google).

Some businesses use both: a password manager for tools outside their SSO setup, and SSO to streamline everyday access where possible.

Dive more into SSO: What Is Single Sign-On (SSO) and Does Your Business Need It?

A Note on Security

Password managers improve security—but they’re not immune to risk. Because they store sensitive credentials, they can also be a target for hackers.

That’s why it’s important to:

• Turn on multi-factor authentication (MFA) for your password manager account
• Use a strong, unique master password that’s not reused anywhere else
• Make sure your team understands that password managers don’t replace good habits—they support them

No system is perfect, but layering strong tools with smart practices gives your business the best protection.

---

Most password managers offer business plans that include all of the above. If you’re not sure where to start, we can help you compare options and set it up.

Horizon helps SMBs across Western Canada manage passwords securely with tools that fit how real teams work.