QuickBooks Cannot Communicate with the Company File [SOLVED]

QuickBooks not connecting to the company file due to firewall
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QuickBooks encounters several errors because of the third-party firewall’s restrictions on its processes. Sometimes these errors prevent QuickBooks from opening the company file whereas sometimes a user can’t open QuickBooks. The error that we are going to discuss in this article is a communication error that prevents QuickBooks from communicating with the company file and is known as QuickBooks cannot communicate with the company file error. Firewall is not the only reason that trigger this communication error in QuickBooks there are some other reasons as well those cause hindrances when QuickBooks connect with the company file. Follow the complete article for detailed and step-by-step troubleshooting instructions.

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What QuickBooks Cannot Communicate with the Company File Error is

As the name of the error describes this error arises when for some specific reasons QuickBooks cannot access the company file or cannot create a connection with it. Once you get this type of error where QuickBooks is trying to access the company file but cannot connect to it due to the firewall, then you get a “Cannot communicate with the company file” error message window on your screen. The error message reads, “It appears that the QuickBooks software on this computer is set up to allow shared access to the company file, but the QuickBooks software on your computer is unable to communicate with it.

QuickBooks not connecting to the company file due to firewall
Cannot Communicate with the Company File

Along with the error message that describes the cause of the error, you also get a solution with it that says, “The communication problem could be due to a firewall issue. If a firewall is installed on your network, you may need to reconfigure the firewall software.” The error message also suggests users download and run QuickBooks File Doctor formerly known as QuickBooks Connection Diagnostic Tool to rectify the error. Using QuickBooks File Doctor is also going to be the first step of our troubleshooting method, follow our article on Fix Damaged Company File or Network using QuickBooks File Doctor for detailed info.

What causes QuickBooks to Encounter Company File Connection Error?

Apart from the firewall application protecting the network, the server that hosts the company file is also sometimes responsible for causing the connection error in QuickBooks. Following are two more reasons that cause QuickBooks to show company file connection error.

  1. The error arises when the server is not configured accurately or if the server is experiencing connectivity issues with other workstations in the network.
  2. QuickBooks requires Database Server Manager to connect with the company file, and if this process is not running on the workstation, then QuickBooks throw such types of connectivity errors.

Steps to Fix Company File Connection Error in QuickBooks

IMPORTANT: Make sure to update QuickBooks Desktop to the latest release before troubleshooting the QuickBooks Connection error.

Troubleshooting Step 1: Set up Windows Firewall

Follow step 2 from our article on QuickBooks Error 12029 for detailed instructions on Excluding QuickBooks from Windows Firewall’s Blocking List.

Troubleshooting Step 2: Create QuickBooks .ND (Network Data) File

(.nd) is the extension of Network Data file that contains all the info of a workstation that is hosting the company file and is required to establish a connection between QuickBooks and the company file. QuickBooks generates this file whenever a user tries to access the company file. Follow the steps below to recreate QuickBooks Network Data File.

  1. Click the Start button on your Desktop that you will find at the bottom left corner of the screen.
  2. Enter QuickBooks Database Server Manager in the Search Programs and Files search box.
  3. Click QuickBooks Database Server Manager if you see it on the list.
  4. If you don’t see QBDatabaseServerManager in the search, then you will need to reinstall QuickBooks. (Make sure to select I will be using QuickBooks on this computer, and I will be storing our company file here so it can be shared over our network option while installing QuickBooks Desktop as this will ensure QuickBooks Database Server Manager’s installation).

    I will be using QuickBooks on this computer, and I will be storing our company file here so it can be shared over our network option
    QuickBooks Custom and Network Options
  5. Under QuickBooks Database Server Manager window hit Add Folder and locate the company file folder.
  6. After selecting the folder that contains the company file hit Scan.
  7. After the scan completes, the application will list all the company files found under the QuickBooks Company Files Found list.
  8. Navigate to the company file folder and check if the Network Data (.nd) files are generated.

IMPORTANT: Make sure that you are hosting the company file only from one workstation in the network and multi-user mode is enabled on that system. This way you can avoid getting errors where QuickBooks is unable to connect to company file type.

Troubleshooting Step 3: Set up Proper Folder Access Permission to QuickBooks

For detailed instructions on How to Set Proper User Folder Access Permission, follow step 5 from our blog on QuickBooks installation error 1904.

Troubleshooting Step 4: Stop Hosting Multi User Access on every Computer in the Network

To remove QuickBooks cannot communicate with the company file error you are required to turn off hosting on every computer in the network except the one that you have selected for hosting the company file. Follow the instructions below to turn off multi user hosting.

  1. Open QuickBooks Desktop and click Utilities under the File tab.
  2. Now select Stop Hosting Multi User Access.

    Stop Hosting Multi User Access in QuickBooks
    QuickBooks Multi User Access Option
  3. Hit Yes to confirm.
  4. If the hosting is already turned off on the workstation, then you will see Host Multi User Access option instead of Stop Hosting Multi User Access.

Troubleshooting Step 5: Verify QBDBMgrN.exe Process is running

  1. On your keyboard press, Control + Alt + Del key together for the Task Manager window.
  2. Find QBDBMgrN.exe under the Processes tab.

    QuickBooks Database Server Manager Process
    Windows Task Manager – QBDBMgrN.exe Process
  3. If you don’t see any process with that name, then follow step 3, Assign Administrative Rights to QBDataServiceUser from our article on Company File Error 6175 for detailed instructions on restarting the QBDBMgrN.exe process.
The Outcome of Troubleshooting QuickBooks Company File Connection Error

The troubleshooting method mentioned above describes every possible step to fix QuickBooks cannot communicate with the company file error in the shortest time possible, even though it might take hours to follow all the troubleshooting steps if a user is not familiar with Windows and its components. We under how crucial it is for you to get back on track with QuickBooks as an error in QuickBooks can affect multiple business activities, our team of QuickBooks Desktop experts are always ready to help users who are struggling with such errors in the Desktop applications. For any help and support, you can call QuickBooks Desktop Support Number (844)-888-4666 that is available 24/7 for QuickBooks users.

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