update QuickBooks Company File? A to Z Tips Tricks

Subject: How to fix QuickBooks Error This Company File Needs to be updated.

Updating QuickBooks Data File is a never-ending process because Intuit invested tons of money in making its QuickBooks Program and QBW file less error-prone. However, one common message is “This company file needs to be updated” QuickBooks 2023. The error message indicates that a new update for the company file has been released. Therefore, We have written this article to provide a helpful guide on updating QuickBooks company files.

Are you facing Error “QuickBooks company file needs to be updated“? If yes, The subsequent article will gonna assist you. However, You should be on call with pro-advisors, While performing mentioned steps.

Causes For Error QuickBooks company file Needs to be updated

  • The company file gets corrupted or damaged before you open it.
  • You might be using different methods to open certain file types.
  • If the company file is already in use over the network, you may be getting this error.
  • Large company files or reports are most likely to freeze as they take a much longer time. Interrupting the process might also lead to the freezing of the QBD.
  • If you are using the wrong version of QuickBooks to open the company file.
  • The company file will not also open if the name or extension is wrong, if you do not have permission to access the company file, if the file is password protected or compressed.

Things you should keep in mind when updating your QuickBooks File to a newer version

First: Check the type of the file

Different extensions store different kinds of data into the files. Ensure you are trying to only open the file ending with .QBW and not with .QBB and .QBM.

Second: Check if you are troubled with the company file or QB itself

Press the control key followed by a double click on the QB icon to open the software. If the program is not opening then you must see this article we have written on QuickBooks Keeps Crashing or does not open.

Third: Confirm that you have admin access to QuickBooks

Before you update the company file, ensure that you are logged in as an admin into the QuickBooks. If you are not sure that you have the admin rights over the QB then you can ask the admin to update the company file or get the admin access.

Fourth: Check if the file is used by multiple users or not

Click on the file and then utilities. If you are seeing the “Stop hosting multi-user access” option then it is clear that the company file is opened in multi-user mode. Click on it and next try to update the company file.

Fifth: Check the company file attributes

  • From windows, explorer locate your company file.
  • Right-click on the file and from the drop-down choose properties.
  • Select the Advanced tab from the properties window.
  • Ensure that the file is not encrypted by the third-party software, neither is compressed, and should be at least of 7 MB.

Sixth: Check if the company file is in the local system or not

It is mandatory to check if the company file you are trying to update is or isn’t stored on the other system. If the company file is not available on your system then copy the company file from another system, update it and pass the updated one.

Note: It is recommended to take the regular backups of the company file as well as before you begin to update it.

If the company file does not gets updated when you try to update it then it is possible that it has been already corrupted. Now if you want to know some quick tricks to recover or fix your damaged company data, you can follow this next section.

Correct techniques and tools to fix the corrupted company file

I: Use the built-in tools within the software to fix the damaged company file

  • Reboot.bat: Similar to changing QuickBooks registries manually, you can use this tool that re-registers many QuickBooks components with MS windows.
  • QB install diagnostic tool: Fixes the company file and the QuickBooks by repairing the Microsoft .NET framework.
  • QuickBooks File Doctor tool: Theall in one solution for data or file-related issues. Data corruption, Windows setup issues, and network issues can be fixed with this tool.

II: Fix QuickBooks company file manually

  • First, login into the program as an admin and open the company file.
  • Make sure that the file is opened in single-user mode only, now initialize data verification by clicking on the file >> utilities >> verify data.
  • If the verification process takes too much time or remains incomplete then you can make a copy of the company file from the server.
  • Again open the company file and login as an admin.
  • Again go through the same process with a small change, click file >> utilities >> rebuild data.

Once the rebuild process is finished, save the copy of the repaired data file .QBW on the local system and on the server. Change the file name and do not host it on the local computer.

What if verify and rebuild data process fails?

Sometimes it is best to use third-party software to repair corrupted, damaged, or unreadable data files if traditional solutions do not bring much help. Here we have mentioned two third-party software that may help you in taking backup and restoring the company file.

Use Rewind with QuickBooks Online

Backup company file data to QuickBooks online with 3 easy steps

  • Sign up and make a rewind account.
  • Now link your QuickBooks online with the rewind and take the backup of your client’s account. If you are also working on multiple client accounts, it can be backup here at rewind.
  • After you have set it up, the first backup will be automatic and you do not have to worry about it. The program will run in the background to keep your data safe.

Restore the data with rewind’s restore facility

  • If you want to restore a single item, say an invoice then go through the vault and do it.
  • If you would like to revert the entire file then you can do it from the Advanced Restore tab.
Coupler for QuickBooks Online and Desktop

Create a backup of the company file

  • Select the preferences from QuickBook’s main menu.
  • Then, choose the backup.
  • Next, you have to specify your preferences. You can see more options like replacing old backups, keeping only new files, want to set a password for your backup file, also take a backup of extra documents.
  • Save the backup on the local system and later upload it to the online cloud server. There is no option to save the file directly on the external drive or cloud.
  • Also, check the “Automatically back up company files when closing” option.
  • Now open the company file you want to take a backup of. As we have already selected the automatic backup option in the previous steps, it will complete automatically.
  • QuickBooks will now display a message: the backup process is in progress. You are all done with this step.

Restore the backup of the data file

  • Launch QuickBooks, from the no company open window, and click on backup files. You can now see the company files you have backed up till date.
  • Choose the backup version you need, you can also select the latest version.
  • Enter the name of the file that is being restored, save it at a location and press save.
  • You can now see it in the available company files.
  • Click on open to view it.

You have till now seen what can be done if your company file is not opening or how to save it from being corrupted. Read the next block to know how to update the company file in 2023.

Fixing “This company file needs to be updated QuickBooks 2023”

  • Open the QuickBooks program and select Open or Restore Company from the File tab.
  • Select whether to Restore a Backup Copy or Open a Company File.
  • If you wish to open the backup copy of the corporate file from the local storage, you may alternatively choose the Local Backup option.
  • Click on Open to browse the company file.
  • If you are not currently logged in as a QuickBooks Administrator, QuickBooks will now ask you for your admin account login information.
  • Sign in using your login information to see the company file.
  • Click Update Now when the “QuickBooks Needs to Update your Company File” popup appears in QuickBooks.
  • Before changing the company file, QuickBooks will automatically make a backup copy of it. You can also change the backup location by choosing the Change this Default Location option.
  • Once the company file has been changed, click on “Done“.


We have made desperate efforts to help users successfully resolve “This company file needs to be updated QuickBooks 2023” or its related issues. But if it still bothers you to access the company file, Well, at that point, You might require to get consults by one of our QuickBooks Data Services experts at +1-888-704-1357.


What to do if QuickBooks couldn’t update your company file?

This is a very unusual error. However, we recommend contacting QuickBooks Data Conversion Service experts if occurrences persist.

Can I upgrade my QuickBooks 2010 File to QuickBooks 2023?

Yes, But I would suggest you do this all under the supervision of our QuickBooks experts.

Why I am seeing QuickBooks File needs to be updated?

Because Intuit usually releases patches to improve performance, such patches also minimize the risk of bugs in the Company File.