Warning: This Company File Needs To Be Updated | Resolved
Upgrading to a newer version of the QuickBooks Desktop? You may see this QuickBooks error message – “This QuickBooks file needs to be updated.” When you upgrade your QuickBooks Desktop to a new version, the QuickBooks company file does not update automatically, but you have to update them manually. However, you don’t need to update your company file while switching to a different QB edition (Pro, Premier, and Enterprise) version. If you are getting the same QuickBooks warning: This file needs to be updated, then read this blog until the end to understand how to update your QuickBooks company file to a newer version.
Things to Consider Before You Update QuickBooks to a Newer Version:
To avoid seeing “This Company File Needs to Be Updated” error message in QuickBooks see the important information on updating your QuickBooks company file listed below-
It is not possible to update QuickBooks file without admin rights:
In QuickBooks, you may grant users various levels of Windows Access Permissions while working in the multi-user mode. However, if you haven’t defined users and roles in QuickBooks Desktop, you are logged in as Admin User by default. However, if you are not logged in as Admin user, you may receive this error message-
“The company file needs to be updated. Ask your QuickBooks Desktop administrator to update the file.”
In this situation, you need to close the QuickBooks company file and reopen it using your Admin login credentials.
Avoid Updating your company file over network:
When you see this prompt- “QuickBooks company file needs to be updated,” then avoid updating your company file over the network. If you want to update a company from a different computer, then first you have to move the file to that system and update it there only. Once it is updated, move it to its original system.
Don’t interrupt the update process of your company file if it is taking time:
Updating a QuickBooks company file may take some time, so you should be prepared for that. Choose to update the company file when a complete downtime does not hamper your work-flow badly. If you try to work with the file having update in process, the update procedure will get interrupted.
Once updated, you may not be able to open QuickBooks file in the older version:
After updating, it is not possible to open the QuickBooks file in the older version. If you want to use your older version of the QuickBooks Desktop, you have to restore the automatic backup of QuickBooks Data in the older version of QuickBooks. If you want to convert the QuickBooks file to a newer version, you can restore it back to the new version.
You cannot convert QuickBooks Desktop Enterprise To Pro or Premier editions:
It is not possible to convert from Enterprise to QB Pro 2019 within the QuickBooks. However, you may get it done by contacting a third party QuickBooks Data Conversion service.
How To Fix “Your Company File Needs To Be Updated” Issue?
To avoid the error message prompting you to update QuickBooks company file, follow the below-listed steps-
- Open the newer version of QuickBooks application.
- Go to File and select Open or Restore Company File
- Now click Open a company file and then hit Next to proceed further.
- Use Browse option to find and Open your Company File
- Read the instructions thoroughly on Move Company File and Update Company File windows and then click
- Update Now
- Create a back up of the company file and save it to a suitable location
- When you get a prompt to continue opening a company file in the new version, hit Yes
No Luck with the Troubleshooting Procedure!
If you continue to see QuickBooks error message: The company file needs to be updated, then don’t wait any further to contact a QB expert. Dial our QuickBooks error support phone number (855)-526-5749 to get in touch with a certified QB expert and get a hassle-free assistance in the error resolution. In no time, you will stop seeing “This Company File Needs to Be Updated” error message and get back to your day-to-day business accounting process.
Update (convert) your company file to a newer version of QuickBooks
After installing a new version of QuickBooks, you update your company data file by opening it in the new version. This process updates company files from any older version of QuickBooks to the newer one.
About updating your data file
- Important: Only the Admin user can update the file
- Do not update over a network.
- After updating your data file, it will not open in previous versions of QuickBooks.
- Enterprise data files only work in Enterprise editions of QuickBooks.
To update your company data file:
- Open the new version of QuickBooks.
- Choose File > Open or Restore Company.
- Click Open a company file and then click Next.
- Browse to your data file, select it, and click Open.
- If QuickBooks displays the Move Company File window, read and follow the instructions shown there.
- Read the information in the Update Company File for New Version window, click (check) the box to show you understand, and click Update Now.
- Follow the instructions to back up your company file, and make a note of where you put it, in case you need to refer to it later.
- When the message “You are about to open a company file using a newer version of QuickBooks…Do you want to continue?” appears, click Yes.
- (Recommended) After the company file is updated:
- Store the backup you created in step 7 in a safe place until you know you will not need it again.
- If you copied the data file from another computer to update it, copy it back again.
- If you installed QuickBooks 2007 or later, the company file from your earlier version of QuickBooks may have been moved to a new folder:
- Windows 8, 7, and Vista: C:\Users\Public\Documents\Intuit\QuickBooks\Company Files
- Windows XP: C:\Documents and Settings\All Users\Shared Documents\Intuit\QuickBooks\Company Files
If you cannot find your data file in its original location, and if it is not in the specified folder, search your hard drive for *.qbw files and try to find it that way. Be sure to include hidden files and folders in your search criteria
Following are the steps that you need to follow if you want to convert your company file to a newer QuickBooks version. Who doesn’t like an improved upgrade after all?
- Open the new version of QuickBooks.
- Choose File > Open or Restore Company.
- Click Open a company file and then click Next.
4. Browse to your data file, select it, and click Open.
5. If QuickBooks displays the Move Company File window, read and follow the instructions shown there.
6. Read the information in the Update Company File for New Version window, click (check) the box to show you understand, and click Update Now.
7. Follow the instructions to back up your company file, and make a note of where you put it, in case you need to refer to it later.
When the message “You are about to open a company file using a newer version of QuickBooks…Do you want to continue?” appears, click Yes.
(Recommended Steps) After the company file is updated:
Step 1 – Store the backup you created in a safe place until you definitely know that you won’t need it ever again.
Step 2 – If you copied the data file from another computer to update it, copy it back again.
These are all the things you need to be wary off while updating your company file and the process will be implemented with 100% precision.
Upgrading Your QuickBooks Company File to 2021
1. Start by opening your new copy of Quickbooks. You might receive a notice telling you how Intuit uses your internet connection – just click OK. The QuickBooks Welcome Screen will then open; click on the button labeled Open or restore an existing company.
2. Next you will see a window labeled Open or Restore Company. Leave the default selection, which should be Open a Company file. Then, click Next.
3. This will open a window labeled Open a Company. To navigate to the I:/ drive (where QuickBooks files are typically stored), click on the icon labeled This PC on the left-hand side. Look for the drive labeled (I:) and double-click on it. You may need to hover over the drives to locate it.
4. You will now see a list of the QuickBooks files located in this drive. Scroll through to find the file you want to upgrade. Make sure there is a check in the box Open file in multi-user mode, then click Open.Note: You will see multiple files matching that name; the one that needs to be upgraded will display the yellow-green QuickBooks icon to the left of its name, and will show QuickBooks Company File under the Type column on the right-hand side.
5. If prompted, please enter your QuickBooks Admin username and password and then press Enter.
6. You will be asked if you are hosting this file on a shared computer or network. Click No. Clicking Yes will cause an error that will require starting the process over again.
7. You will then be given an overview of the update process. Click the Update Now button.Note: A backup file will be created and placed in a folder on the desktop. The folder will be labeled named QBXXBackupFiles where the XX corresponds with the version of QuickBooks you are upgrading from.
8. The file will now go through the upgrade and backup process.
9. Once completed, you will receive confirmation that the file has been upgraded. Just click Done.
Congratulations! When you reach this point your QuickBooks file will have successfully been updated to QuickBooks 2021. The file should open automatically so that you can resume working.
Convert Your Company File to a New QuickBooks Desktop Version
QuickBooks is a highly advance accounting software which is garnering praises from users all across the world. Also, the makers are constantly at work to make it better day by day. If you are a QB user, you are supposed to keep receiving updates and upgrades that may be of immense importance to you. Performing an upgrade or converting a company file, however, is not recommended without proper knowledge of the process. Thus, we are presenting you this article that consists of all the required steps to upgrade or convert your company files with ease.
Important Tips before you Upgrade or Convert the File
Here are a few things you must know before upgrading or converting your company file:
- The QuickBooks company file can only be updated by the admin user.
- It is not recommended to upgrade the company file over a network.
- Once a company file has been updated or converted into the new version, you won’t be able to open it in previous one.
- Pro or premier file upgraded or converted to Enterprise edition would no longer open in the previous version.
- Enterprise company files only function in QB desktop Enterprise edition.
- Before upgrading or converting your company file you should rebuild and verify the integrity of your file.
- This would make the process of upgrading company file smooth. In case any error pops up, you can refer to the official website of Intuit or contact QuickBooks Support Service providers.
Preparation of company files for converting
We have to double check the data for issues in the company file. As soon the company file is converted, you cannot make any changes in the file. These are the things that help company file for converting and upgrading.
- Firstly, need to create a portable company file.
- Avoid using alphanumeric characters (! @#$ %^&*) in the name of the company file.
Re-Sort all the six of the major list
- Open the list of Vendors, customers and employees by clicking the icon of the top bar. Search the list after viewing the list.
- Click on View and then select Re-sort list.
- Item List: Go to the list and then select Item list and then Click on Account which is situated in the bottom left you, can also see the last option is resort list.
- The chart of Account: Select the Chart of an account by clicking on Account in the bottom left, the last option is Re-sort list.
- Now, you will Reset the admin password or password hint because sometimes pass code rises the problem so change the password for security purposes.
- Rebuild the data: Rebuilding your company date by official Intuit website.
- Verify the Data: Read up the verifying related information by Intuit site.
- Search the error in QBWin.log file and read the file for any errors- Read up on the QuickBooks log file.
To Convert or Upgrade your company file
First of all, you have to install the latest version of QuickBooks Desktop software (QuickBooks Desktop 2019) and after that you can upgrade/convert your company file.
Only Admin user can convert or upgrade company file in QuickBooks
- If you are the only user of your company file then obviously you are an administrator and you will need to sign into the “Admin” user to continue with these steps.
- If you are not admin and you want to upgrade your QuickBooks Company file then you will receive the message “The Company file needs to be updated”.
- Please ask your QuickBooks administrator to update the company file.
Do not update your QuickBooks Company file over a network
- You need to that it is not important to update company file while stored on a network or a mapped drive. This will take conversion unsecured. It also puts the file at risk of being corrupted.
- The QuickBooks Desktop Company file must need to save locally on the desktop you are operating it from.
Upgraded QuickBooks Data file can’t be opened in previous versions
- If you convert the QuickBooks Company file to a newer version after that older version of QuickBooks will not able to open it.
- QuickBooks Desktop will automatically backup your data file before updating it. If you want to return to the older version, you can always restore this back up with your previous version of QuickBooks.
- If the transfer process is interrupted for any of the reason then you can restore the backup with your latest version of QuickBooks Desktop to reboot the upgrade.
Enterprise company file just work in QuickBooks Desktop Enterprise editions
If you wish to try old version to latest version for updating or converting company file then just follow the steps given below:
- Recover and verify your company data file.
- If the verification process fails then use the qbwin.log file to identify and solve error commands.
- After the up gradation is completed to make sure that the modified data file is in good shape by running to verify data utility. If this step fails then repeat the previous steps.
Steps to Upgrade or Convert Company File to a Newer Version
An Easy Upgrade feature will itself create an updated copy of your latest files if you have a QB subscription that is active. Furthermore, you can perform the following steps to upgrade additional company files.
- Open your updated version of QuickBooks Desktop.
- Go the File, and choose Open or Restore Company.
- Choose Open a company file.
- Click Next.
- Select your data file and select Open.
Important Note: If the Move Company File window appears, follow the instructions shown.
- Know about the New Version pane by reading thoroughly the info in the Update Company File. Check the checkbox to notify you understand, and select Update Now.
- Follow the steps provided to back up your file. Make a note of the location where you save your file.
- If you are going to open a company file using a newer version of QuickBooks, you may receive a prompt that would read, “Do you want to continue?” Select Yes.
- Also, perform the following steps once the file is updated:
- Make sure you save the backup in a safe location until you are certain that it won’t be required again.
- In case the file was copied from a different PC, create a file copy in the computer the file initially belonged to (or was copied from).
- If you are not able to find your data file in its original location or in the particular folder, check your hard drive for *.QBW files. Also, search Display hidden files, folders, and files using Windows for more information.
- In case you have QB Desktop Payroll attached, check out your payroll service. Open the Employees menu > select My Payroll Service > see Account/Billing Information.
Some tips to get a smooth Upgrade of your QuickBooks Company File
Before updating Your company file you need to perform a few things in your previous QB version, you need to follow some important points that are given below:
- Resorting of Your lists.
- Rebuild your data file.
- Verify your data file.
- Check your Qbwin.log file for error messages.
- Ensure the QB updated data files are in good shape.
Note: You can run a verify data utility manager once the update completed.
We hope this article will assist you to upgrade/convert your company file to a newer version of QB Desktop. But if you face any trouble, or have any QuickBooks related query, you can contact our 24×7 QuickBooks support helpline team at +1-888-300-3913.