Just suppose you upgraded to the QuickBooks Desktop application to the latest version, and suddenly, you end up with “This company file needs to be updated” error prompt. Many users often report such issues while trying to open the company file At times. However, if in case you switch to a different QuickBooks desktop version such as Pro, Premier, or Enterprise, you don’t need to change your company file. But the glitch in your company file requires to be updated at the earliest. Don’t you have any idea about how to update QuickBooks company file? No worries, here’s the solution.

When does the update QuickBooks company file error message emerge?

It’s an undeniable fact that QuickBooks usually comes up with an automatic feature to convert from the old to the new version seamlessly. So when you try to open the company file, the “QuickBooks Desktop needs to update your company file” or “this company file needs to be updated. Please ask your QuickBooks Administrator to update the file” error prompt starts appearing on your window screen.

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Things to keep in mind before upgrading your company file!

Below are a few things you must consider when you update the QuickBooks company file to the latest QuickBooks Desktop software. Have a look:

The QuickBooks company file requires to be updated with full admin privileges.
It is not suggested to update the company file over a network.
Once a company file has been updated or converted into a newer version, you won’t be able to open it in the older one.
Pro or premier files upgraded or converted to Enterprise edition would no longer open in the older version.
Enterprise company files can only function in the QuickBooks desktop Enterprise edition.
You must rebuild and verify the integrity of your company file prior to upgrading or converting your company file.
Don’t interrupt it if updating your company file takes longer than expected. Else, the update will be halted.

How to update QuickBooks Company file?

Before moving further with the process, ensure that no user is logged in to the company file without having admin privileges. Once it’s done, carry out the below-given steps to update QuickBooks company file smoothly:

Step 1: Install QuickBooks Software

Firstly, you need to log in to Windows as an admin user.
Now, download the updated version of QuickBooks Desktop if you haven’t already.
Follow the below-given steps to install the latest version of the QuickBooks Desktop application:

Open the downloaded QuickBooks.exe file. Then, you must perform the given on-screen instructions and complete the installation process.
Also, accept the software license agreement and tap on Next.
At last, enter the Product and License numbers whenever required and press Next.

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Step 2: Prepare your Company File

In the inception, open your original version of the QuickBooks Desktop application and then access the company file you want to upgrade.
Now, you need to hold down the F2 key to open the Product Information window.
Navigate to the File Information section and make sure to note the location of your company file.
After that, run the rebuild Tool for your company file. This prepares it for the upgrade.
Finally, make sure to move your company files to your system’s local hard drive if you want to keep them on the server. However, you must transfer the files back once you upgrade them.

Step 3: Upgrade your Company File

To start off, ensure that all users log out of your company files.
Now, open your new QuickBooks Desktop version.
Under the File tab, you must select the Open or Restore company option. If the company file doesn’t open up, navigate to the File menu and then choose Open or Restore Company.
After this, click on Open a company file and then press Next. Instead of having a company file (QBW), you must have a backup company file (QBB); tap on Restore a Backup copy and then Local backup.
Next, browse your company file and then click on Open.
QuickBooks will now ask you to enter admin account login credentials in case you are not signed in as a QuickBooks Administrator yet.
Furthermore, type the sign-in credentials and log in to your company file before upgrading.
QuickBooks automatically starts generating a backup of your existing company file. Also, you can select the Change this default location if you wish to save the company file backup in a specific folder.
Click Update Now to start the upgrade.
Once you’re done with the updating process, press Done.

Wrap-up!

Is it hectic for you to update QuickBooks Company File? Don’t worry; here’s the right solution for you. If you’re a regular QB user, then it's very normal to get into such company file-related errors while trying to open or access it. However, sometimes you need to update your QuickBooks company file manually as it’s difficult to update it automatically. So, feel free to contact our tech experts at a Toll-free number +1-(855)-955-1942 to get all your problems resolved in a timely manner.