Handy ways to handle "This Company File Needs to be Updated" Error

Are you also considering upgrading to a newer QuickBooks Desktop version? The QuickBooks error message “This Company file needs to be updated” may appear. When upgrading your QuickBooks Desktop to a new version, you must manually update the QuickBooks company file. You don’t have to alter your company file if you switch to a different QuickBooks version (Pro, Premier, or Enterprise). If you are receiving the same QuickBooks warning, the file must be updated. So keep reading to find out how to upgrade your QuickBooks company file to a newer version.

You may occasionally receive the QuickBooks error “This QuickBooks company file needs to be updated.” This problem frequently occurs after you have recently upgraded your QuickBooks to the most recent version.

Don’t be concerned if you receive this error. Today, we’ll provide you step-by-step guidance on how to address the QuickBooks Company File that has to be updated.


1st Step: What Causes the QuickBooks “This Company File Needs to be Updated” Error?

The problem typically happens when you attempt to open an old company file with a newer QuickBooks version while not logged in as an administrator.

Note: When you upgrade QuickBooks Desktop to the current edition, the company file does not automatically update and must be updated manually. Failure to do so may result in problems opening a corporation file.

2nd Step: How Do I Fix the Problem?

This section will walk you through the actions necessary to remedy the company file issue at hand.

Before You Begin

Here are a few major considerations you should be aware of:

  • Without administrative privileges, you cannot update a QuickBooks data file. To update the file, make sure you have administrative access.
  • When you receive the “This company file needs to be updated” warning, do not upgrade your QBW file over the network. If you need to upgrade a corporate file on a separate computer, you must first move it there and then upgrade it. Move it back to the original PC once it has been upgraded.
  • Wait for the upgrade process to finish without interfering. Depending on the size of your company file, this may take longer to complete.

3rd Step: How to Fix the Problem

To resolve the error, go into your QBDT programme as an administrator and then upgrade your corporate files to the latest software version. The specific steps are as follows:

Before attempting these steps, ensure that all users have exited the business file. Also, make sure you’ve downloaded the latest version of QBDT. After you’ve downloaded it, follow these instructions to install the most recent version.

  • Log in to QuickBooks Desktop as an administrator.
  • Open your previous QuickBooks version, then the company file you want to upgrade.
  • By using the F2 key, you can access the Product Information screen.
  • Locate the location of the corporate file on your computer using the File Information section. Then, make a note of the file’s location.
  • Rebuild the company file using the Rebuild Utility.
  • Launch your new QuickBooks Desktop version.
  • Navigate to the File menu and select Open or Restore Company.
  • Select the option to Open a company file, then click Next.

Notable Point: If you have a backup file (QBB) rather than the business file, choose Restore a backup copy > Local backup.

  • Navigate to and access your company’s file (with .qbw extension).
  • Log in as the admin user to your.qbw file.
  • To begin the upgrade process, click on Update Now.
  • When the process is finished, click Done.

If the issue persists and you are still unable to load the business file, you can attempt to recover the data from the company file using the above steps, So ask QuickBooks Data Migration Services experts to upgrade the file.