Why ‘This QuickBooks Company File Needs to Be Updated?’

Users get the QuickBooks Company file needs to be updated error message while attempting to launch a company file after the upgrade. This issue mainly takes place if the user doesn’t log in to QuickBooks as an admin user. However, it is essential to upgrade the company file after the software upgrade to make the file compatible. Thus, it ensures that you have enough rights to run QuickBooks for accomplishing your daily business operations.

Read this post to understand the root causes that trigger the “this company file needs to be updated in QuickBooks” issue. Also, we have elaborated on the solutions to fix the issue.

Table of Contents

Why do users get the “QuickBooks This company file needs to be updated” error?

Most often, users may receive the “QuickBooks This company file needs to be updated” error message while running an incompatible version of QuickBooks. Other Factors responsible for this issue are illustrated below.

Corruption or damage is present in the QuickBooks company file.
You are using the outdated company file, while QuickBooks is updated to the latest version.
If you haven’t logged in to QuickBooks with the proper admin rights.
This issue may also arise when the company file is previously present on the network and is used by someone else.
Sometimes, the “QuickBooks the company file needs to be updated” issue may occur while shifting or storing the data file.
The user is accessing an incorrect method to open the specific file type.
Invalid symbol or extra spaces before the extension may cause the company file to need to be updated, resulting in a QuickBooks error.

Tips to Consider Before Fixing the “QuickBooks Company File Needs to be Updated” Issue

Before you resolve the QuickBooks Company file needs to be updated issue, it’s crucial to consider a few factors.

It’s necessary to have proper QuickBooks admin rights and permissions for updating the company file.
You mustn’t update the QuickBooks data file that is placed on another computer in the network. So, if the data file is situated on a different workstation, move it to a local computer, update it, and copy it back to the other workstation.
Make sure that you don’t try to open the company file till the update process is complete. It’s recommended to open it after the update process is completed.
The users can’t convert the file to other versions of QuickBooks if you are a QuickBooks Desktop Enterprise user. However, to avoid any data loss, relocate the data file saved over the network to a local computer before updating it.

Step-By-Step Instructions to Update Company File in QuickBooks

Make sure that you log in to QuickBooks with an admin account to update the QuickBooks company file. The following are the instructions you must follow for the seamless update process.

First Step: Get Ready with the Data File That Needs to be Updated

The users must look for the location of your company file by performing these steps:

Firstly, launch the original version of QuickBooks and then login to your company file that you wish to update.
After this, hit the F2 key and access the Product Information window. Then, you must write down the location where the data file is stored.

Second Step: Update Your Company File to the Latest Version

Initially, access the QuickBooks Desktop application on your computer and tap on the File menu.
After this, choose the Open or Restore Company option.
Head to the Open a company file option and then hit the Next tab.
You must highlight the data file and then tap on the Open menu.
Now, thoroughly review the details from the Update Company file for the new version pane. Then, mark the checkbox to reflect that you understand all the details and click the Update Now tab.
Furthermore, carry on with the instructions regarding how you want to back up your company file. Herein, make sure to save the company file location.
Later on, when you see the message “You are about to open a company file using a newer version of QuickBooks…… Do you want to continue?, hit the Yes tab.
With this, your company file will be updated to the latest released version.

How to Fix This company file needs to be updated QuickBooks Error?

After knowing the causes, it’s time to look at the troubleshooting methods to fix the “This company file needs to be updated in QuickBooks” issue.

Method 1: Re-Register Your Reboot.bat File

The main purpose of the reboot.bat file is to register the crucial QuickBooks files including .OCX or .DLL. But, sometimes users may end up with the “The company file needs to be updated QuickBooks” issue due to the failure of running the QB program. So, to address the issue, you need to register the reboot.bat file again by implementing these steps.

Close QuickBooks and the background running applications.
Now, launch the Run window, type “CMD” in the search box.
When the Command Prompt opens, insert “cd C: / Program Files (X86) / Common Files / Intuit / QuickBooks” and hit the Enter key.
Afterwards, add the “reboot.bat” and hit the Enter key.
Furthermore, hold on for some time and allow the reboot.bat file to register on your PC.
Once done, exit from the Command Prompt window and open the QuickBooks program.
If the issues persist, then try another troubleshooting method given below.

Method 2: Restore the Backup Copy of the Data file

At times, the issues with the company file data may also lead to the “this company file needs to be updated in QuickBooks” issue. So, it’s suggested to restore the backup company file and then try updating the company file again.

Method 3: Shift the QuickBooks Company File to a Different Location

To move the QuickBooks company file to a different location, perform the following steps.

Firstly, launch the QuickBooks folder and copy your company file that is creating the issue.
Next, right-click on the company file and tap on the Copy option.
Go back to your desktop and generate a new folder. Within the new folder, you need to paste the file you copied to a particular location.
Finally, open the QuickBooks Desktop and then your data file to see the exact status of the error.

Method 4: Run the Verify & Rebuild Data Utility

Running The Verify & Rebuild Data Utility

At times, the users may end up with this error due to damage or corruption in the QuickBooks company file data. Therefore, to fix the issue, you must run the Verify & Rebuild data utility on the file. As a result, it will scan for the potential issues with the data file and then rebuild the damage.

Method 5: Resolve the Damage With the QuickBooks Application

Sometimes, damage or corruption occurs during the installation of the QuickBooks Desktop application. So, it is essential to repair the QuickBooks application before opening the company file. For that, you must carry on with the instructions given below.

Shut down the QuickBooks application and all other programs in the background.
After this, go to the Start menu and open the Control Panel.
Now, browse to the Programs and Features option or Add or Remove Programs according to your Windows operating system.
You must start looking for the QuickBooks application from the list of installed programs and then right-click on it. Later on, browse to the Change or Repair tab.
Next, perform the instructions given on your computer screen and then restart your PC.
Finally, launch the QuickBooks application to verify if the QuickBooks company file needs to be updated, and if the issue still exists.

Method 6: Change the Name of the File After Switching the Location

Users often face issues while trying to launch the company file created with a previous version of QuickBooks. So, to prevent the issue, verify that your company file and the QuickBooks application are of the same version. But sometimes, even after using the same version of the data file, QuickBooks prompts you to update the data file. It may usually happen when the QB fails to connect with the data file because of invalid characters in the file. Therefore, to fix the issue, you need to change the file name using the steps below.

Initially, access your company file folder location from the File Explorer.
After that, right-click on the data file and tap on the Rename option.
Thereon, remove the special characters such as >, <. &, $, etc, before saving your company file.
Now, you must right-click on the company file once again and tap on the Copy option.
Furthermore, browse to the location: “C: Users \ Public\ PublicDocuments\ Intuit\ QuickBooks20XX \ CompanyFiles.”
Next, press the Ctrl + V keys and paste the file. Then, try to access the data file in QuickBooks through its default location.

Method 7: Reinstall QuickBooks Using Selective Startup Mode

If the above solution doesn’t work out, then try reinstalling QuickBooks using the Selective Startup mode. For that, you must carry on with the step-by-step instructions listed below.

Under this process, launch the Run window and type “msconfig” in the search box.
After this, tap on the OK option to open up the System Configuration Utility.
Thereon, head to the Selective Startup option right beneath the General tab.
Leave the “Load Startup Items” checkbox and look beneath the Selective Startup section.
Now, browse to the Services tab and tick the checkbox “Hide all Microsoft Services”.
Choose the Apply option and click OK to restore the changes. Then, exit from the System Configuration Utility window.
Start downloading the QuickBooks installation file from the Intuit official site and then save it to a safe location.
Next, right-click the downloaded setup file and browse to the Run As Administrator option.
Do as per the instructions given on the screen for installing QuickBooks.
Once done, turn on the startup items and services to see if it’s working appropriately.
Next, enable the startup items and services to disable them and move back to the System Configuration Utility. Move to the Normal Startup option and head to the General tab > Apply option.
Restart your PC and see if the issue still exists.

Conclusion

So, we come to the end of this post and hope that the above solutions will help you address the QuickBooks company file needs to be updated error. Thus, it also helps you update the company file without any further discrepancies. If you are still encountering any issues while updating, then connect with our BizBooksAdvice professionals for quick resolution.

Frequently Asked Questions (FAQ’s):-

Question 1: How to check if QuickBooks needs an update?

Ans. To verify whether QuickBooks needs an update, open the QuickBooks application. After this, tap on the Check For QuickBooks Updates option to see if any updates are available. If any new updates are released, you will be prompted for the same. You need to download and install the available updates.

Question 2: Does QuickBooks need to be updated?

Ans. Yes, it is essential to update QuickBooks to fix bugs and get the new security patches. Also, it is necessary to use the new features to improve the software performance and speed to enhance your accounting experience.

Question 3: Does QuickBooks have to be renewed every year?

Ans. Yes, it is essential to renew the QuickBooks subscription after one year to view your company file data.

Question 4: What type of file is a QuickBooks company file?

Ans. QuickBooks creates the company file with a .qbw file extension. It is the file that stores all your company files and the account-related information.

Question 5: How do I move a QuickBooks company file to a new folder?

Ans. To move a QuickBooks company file to a new folder, right-click the folder and choose the Copy option. After this, access the external device that you access to move the files or access the new location on your hard drive. At last, hit the Paste option to transfer the file to a new folder.

About The Author

Jonathan Browns

Jonathan Brown is a trained QuickBooks professional with 10 years of experience in the accounting sector. Moreover, he is passionate about helping businesses reduce the stress of managing accounts. Also, he is proficient in assisting entrepreneurs and small business owners to use QuickBooks and enhance their accounting experience.

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