• Home   /
• Blog
• QuickBooks Multi-User Mode Not Working: Pro Ways to Fix It

QuickBooks Multi-User Mode Not Working: Pro Ways to Fix It

• 
• By Jonathan Browns
• Oct 03, 2025
• Accounting
• 7 min read

Multi-user mode is an in-built feature of QuickBooks. As its name suggests, many users are able to work on the same company file simultaneously without any confusion. However, each user needs to have a QuickBooks License of their own on their workstation to access this feature. Although users often face issues like QuickBooks multi-User mode not working while using the multi user mode, leaving the users agitated and confused.  

In this blog, you will learn how to fix this error along with its causes. You may be facing this error because your QuickBooks is not installed in your company. Make sure that you have installed the correct version of the QuickBooks database server manager.

What Triggers the QuickBooks Multi-User Mode Not Working Error

There are certain triggers behind an error. Let us learn what the possible causes of this error could be. The causes are as follows:

• The firewall has denied access to the company file.
• The file you are trying to open might be damaged.
• QuickBooks DB service is not working.
• The user does not have the proper read and write permissions on Windows.
• The QuickBooks software cannot obtain the IP address of the server that is hosting the company file.
• The QuickBooks software is not installed on the server computer.
• Antivirus software on your computer system might have restricted the QuickBooks software.
• The company file is not opening via the  QuickBooks Database Server Manager.
• Windows firewall settings might not be configured correctly.
• The hosting settings are incorrect or not set up properly.

Pre-Conditions to Take If QuickBooks Multi-User Mode Stops Working

The pre-conditions to check if the multi-user mode is not working are as follows:

• Make sure that you have installed the same version of the QB Database Server Manager that your QuickBooks uses.
• Check the Windows administrative rights.
• Do not open multiple company files on the same workstation, as it can also be a reason for the occurrence of Multi-User Mode Issues- QuickBooks.

Ways to Fix the QuickBooks Multi-User Mode Not Working Issue

This section is the most important part of the blog, as it gives users the solutions they can carry out to fix this error. The solutions are as follows:

Solution 1- Check the Folder Permissions on the Server Computer

The folders that are hosting the company file should have the right permissions so that they can also be opened in or through other systems on the network. Follow the steps mentioned below to check if the folder permissions are set correctly.

• Navigate to  Windows Explorer on your server computer.
• Look for the folder that has the company file and right-click on it.
• Now, click on the ‘Properties‘ option and move to the ‘Security‘ tab.
• Go to the ‘Advanced‘ section in the ‘Security‘ tab and then select ‘QBDataServiceUserXX‘.
• Click on the ‘Edit‘ option.
• Allow all the important settings.

Solution 2 – Check if the Multi-user Mode is Enabled or Not

The steps to check if the Multi-user Mode is enabled or not are as follows:

• Navigate to the ‘File‘ menu and furthermore go to the ‘Utilities’ section.
• Now, click on the ‘Host Multi-User Access‘ option.

• Now, press the ‘Yes‘ button to confirm the changes.

Solution 3 –  Edit the QBWuser.ini File

Still encountering the multi-user mode error when you open QuickBooks? Try to rename the QBWuser.ini file using the instructions below if the above given solutions have not worked out for you. The steps to do so are as follows:

• Initially, go to the App data folder and open the QBWuser.ini file saved in it.
• The file path is as- C: \ Users \ (username) \ AppData \ Local \ Intuit \ (Your QuickBooks Desktop version)
• But if you are struggling to find the App Data folder, make sure you change Windows settings to show hidden files and folders.
• Now, look for MULTIUSERMODE in the QBWuser.ini file.
• Set the value to Y ( MULTIUSERMODE=Y) in the Multiusermode line.
• Press the ‘Ctrl + S‘ to save the changes made to the QBWuser.ini file.

Solution 4 – Ping the Server from a Workstation

However, issues in the network can cause failure and trigger errors. Follow the steps mentioned below to fix the issues in the network. The steps are as follows:

Note: Before fixing the QuickBooks multi-user mode not working error, check whether you have switched on the network discovery on all the servers and workstations.

• Press the Windows key, then type network in the search bar. This will lead you to network status and system settings; click it.
• Now go to advanced network settings, and you will see the network and sharing centre.

• Open it, and now, on the left, you can see the Change advanced sharing settings option; click on it.

• You will see a window with Advanced sharing settings. Under this section, go to the network discovery and file and printer sharing section, choose the “Turn on network discovery” setting and “Turn on file and printer sharing” options.
• Take note of the name of your server.
• Now click or press  Windows + R, and the  Run window will open. Now, you have to type cmd in the text box and press the Enter key.

• Note the host and server name.
• If you want to test the server, go to the workstation and open the command prompt.
• Type “ping_server name” and then press the Enter key.

Solution 5 – Add the Server to the Windows Host File

If QuickBooks single-user mode cannot switch to multi-user mode, do the following:

• Use the notepad to open the Windows host file, facing the multi-user mode error.
• The location of the host file is as follows: C:\Windows\System32\Drivers\etc.
• If it is required, then you shall open the notepad as an admin.
• Then, you must type the server’s IP address and the last IP address.
• Type in the server name after pressing the Tab key.
• Move to the File menu and click Save, followed by Exit.

Solution 6 – Rename. ND File

ND stands for network files, and these files play an important role in connecting a company file to a network, and if the. The ND file is not named correctly; this error may take place.
The steps to rename the. Nd are as follows:

• Go to the folder that has the QuickBooks company file.
• Now look for the file with the extension. ND right-click on it
• Select the option Rename from the drop-down menu and add. OLD at the end of the file name.
• Save the changes.

Solution 7 – Run QuickBooks Database Server Manager

QuickBooks Database Server Manager helps the application access the file on the server. If the service is disabled, this error can occur while accessing the company file. To restart the QB Database Server Manager:

• Download QuickBooks Tool Hub in the first place.
• Now in QuickBooks Tool Hub, select the Network Issues option.
• Next, choose QuickBooks Database Server Manager, and here, choose the option Start Scan. If you cannot find your company file, click on Browse and find it.
• Click on Start Scan and then hit the Close button.

Solution 8: Configure Firewall Settings to Allow QuickBooks Access to the Local Files and Folders

To configure firewall settings to allow QuickBooks access to the local files and folders, follow these steps.

• Go to the Control Panel from the desktop on your computer.
• Now, go to the Control Panel.
• In the Control Panel, go to firewall settings and click on enter.
• Click on Allow Programs and include QuickBooks in the list. 
• Now, click on OK.

Solution 9: Check Whether QuickBooks Services are Running

To check whether QuickBooks services are running, follow these steps:

• Verify that the server PC is running the QBCFMonitor Service and QuickBooks DBXX or not (where XX is the year of QuickBooks).
• Now type services.msc in the Windows search bar. Now click on the Enter button.

• A  Services Window will pop up on your computer screen, and you will see the QuickBooks DBXX service on your computer.

• If this does not appear, then you have to follow the given steps:
• Make sure that the server is correctly installed with the Database Server Manager.
• Now, you have to look out for the latest Database Server Manager available. The Manager receives an upgrade every year, followed by the installation of QuickBooks Desktop on the user’s machine.
• Make sure that hosting is on the server system.
• Now, double-click the QuickBooks DBXX service. As the service starts, one of two options should be available: Running or Start.
• After the repeated attempts, navigate to the Recovery tab, and pick the option to restart the QuickBooksDBXX Service in the next step.

Solution 10: Make a Company File Folder

• For the Company file, create a New Folder. Make sure to reach the Host system.
• Now,  configure the folder.
•  Make sure that you allow the new folder to access Windows to Access Permissions.
• The company files can be shared across systems.
• Now, copy the .QBW File to the New Folder right away, and make sure the company file is opening in multi-user mode.

Conclusion

We are at the end of this blog. This blog has explained how you can a user use and fix any issues related to fixing multi-user mode issues in QuickBooks. In case you are still unable to fix or are still struggling to fix the error of QuickBooks in multi-user mode, feel free to call our QB experts at our toll-free number. We will be happy to assist you.

Frequently Asked Questions (FAQs)

1. How to fix QuickBooks multi-user mode not working?

In QuickBooks Tools Hub, select Network Issues and choose QuickBooks Database Server Manager. From there Start Scan for your company file if it is opened. Else, Browse it from the location and then Start Scan. After the Scan has run, even the firewall permissions are repaired with QDSM.

2. Why is QuickBooks multi-user mode not working H202?

QuickBooks users often report receiving the error code H202 when switching to multi-user mode. In most cases, this error occurs if the multi-user connection on your server computer that stores QuickBooks Company files has been disabled.

3. Can I use QuickBooks on multiple devices?

Yes, the multi-user mode in QuickBooks Pro allows multiple users to collaborate on the same company file at the same time. All users must be networked and must each have their own QuickBooks license.

4. Can you backup QuickBooks in multi-user mode?

To back up your file, make sure you’re in single-user mode. To check your mode, open the File menu and look halfway down the list:

• If you see Switch to Multi-User Mode, you’re already in single-user mode — you’re good to go.
• If you see Switch to Single-User Mode, click it to switch modes before proceeding.

5. Why is QuickBooks so slow in multi-user mode?

A weak or unstable network is often the leading cause. QuickBooks heavily relies on seamless communication between the server and the workstations. As your data grows over time, so does the file size. A large company file can drastically slow down performance, especially in a shared environment.