This company file needs to be updated, a message many users have come across recently. So let’s look into this blog and understand what this message entails and how to troubleshoot it successfully.
Suppose you upgraded your QuickBooks Desktop to the latest version. You might notice error messages like “This This Company File needs to be updated QuickBooks 2022” or “QuickBooks Needs to update your Company File” while opening the company file. QuickBooks Desktop can open a company file of the same version as the software or an older version.
Update QuickBooks Company File is a straightforward process. However, you need to consider a few crucial facts before updating that we have listed further in this article.
QuickBooks Desktop needs to update is a frustrating issue that needs immediate rectification. While this blog covers the groundwork, if the issue persists or you feel stuck, you can contact our QB experts at the Customer Support Number +1- 855 738 2784 for professional assistance
What is the Error ‘The Company File needs to be Updated’ Message?
QuickBooks has an automatic feature to convert from the old to the new version seamlessly. So when the application updates, opening a company file may show trouble. It may cause a “QuickBooks Desktop needs to update your company file” message to emerge.
“This company file needs to be updated QuickBooks 2022” message may pop up repeatedly and frustrate a user. Since the company file doesn’t update with QuickBooks, trouble accessing them with the newer app version arises. However, switching to a different QB version like Pro, Premier, or Enterprise doesn’t prompt this problem.
Manual updation is necessary to prevent this issue. However, since upgrading to the latest QB version can trigger this problem, let’s know how to fix QuickBooks Desktop needs to update your company file error message.
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How the Update Company File Error Message Appears in QuickBooks
Following are the exact descriptions of how different types of update company file error messages appears in QuickBooks Desktop application while trying to open the company file:
This Company File needs to be Updated
Update Company
QuickBooks needs to update your company file.
If you plan to use this company file in multi-user mode after the update, other users will still be able to use the update file even if they are not using the latest QuickBooks release. 
This Company File needs to be Updated
Warning This company file needs to be updated. Please ask your QuickBooks Administrator to update the file.
Facts to Consider before Updating the QuickBooks Company File
Following are some of the important consideration that you must follow before going forward with updating the company file as per the updated QuickBooks Desktop software:
You can only Update QuickBooks File with Admin Rights
Make sure you are logged in as an admin user in QuickBooks before updating the company file. If you are not sure about the user account access, then ask your QuickBooks administrator to update the company file or provide your user account with admin rights.
Do not Update File Stored on Another Network Computer
Update QuickBooks Company File stored on a different computer in the network is not recommended. If the file is located on a different workstation, then move it to the local machine, update it, and copy it back to the other workstation.
Avoid Interrupting the Update Process, Even if it Takes Time
Make sure that once the file update is under process, no user in the network can access it. It might also take some time to update the file depending on the file size.
QuickBooks File Won’t Open in the Older Versions
If you are still using the older version of QuickBooks on a different computer, then make sure to create a backup copy of the company file on that computer. Once the company file is updated, it cannot be opened in the older versions of QuickBooks Desktop.
QuickBooks Desktop Enterprise will not Convert into Pro or Premier Editions
If you are using QuickBooks Desktop Enterprise, then it is not possible to convert the file in other versions of QuickBooks like QuickBooks Pro and premier.
IMPORTANT: Before updating the company file, make sure to run the QuickBooks Verify and Rebuild Data Utility to avoid any data loss or discrepancies during or after the update.
- Launch the latest QB version with complete admin rights.
- Next, choose the file you wish to upgrade. Open this file for the firm you want to improve.
- Now run the Rebuild Data Tool.
Ensure to relocate the company file saved over the internet on the local computer to prevent loss.
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Steps to Update QuickBooks Desktop Company File
Knowing how to fix QuickBooks Desktop needs to update your company file issue requires adequate attention to the sequence of the steps. Moreover, before following the steps mentioned below, make sure that no users are logged in to the company file and that you are logged in with a QuickBooks admin account.
- Open QuickBooks Desktop, and from under the File tab, click Open or Restore Company.
- Choose from the options to Open a Company File or Restore a Backup Copy.
- You can also select the Local Backup option if you want to open the backup copy of the company file from the local storage.
- Browse the company file and click Open.
- QuickBooks will now ask you for admin account login credentials if you are not logged in as a QuickBooks Administrator.
- Enter the login credentials and sign in to the company file.
- Once QuickBooks displays “QuickBooks Needs to Update your Company File” window, click Update Now.
- QuickBooks will automatically create a backup copy of the company file before updating, and you can also change the backup location by selecting the Change this Default Location
- Click Done once the company file is updated.
Once you’ve completed the updation process of the company file, proceed as follows:
- You should save your backup file to an easy-to-find location to access in the near future.
- If you’ve copied a file from another computer, you can update it by copying it again.
- If you have the QB 2007 version installed on your system, the company file from the past version might have moved. You can find it as follows in various Windows Operating Systems:
– For Windows 7 or later systems, you can find your file by navigating through the path C:/Users/Public/Documents/Intuit/QuickBooks/Company Files
– Windows XP users can navigate the path C:/Documents/Settings/All/Users/Shared/Documents/Intuit/QuickBooks/Company Files for their file.
– If you can’t find your file in the original or desired folder, search your hard drive to find files with the *.qbw extension.
– Also, check the hidden files and folders to search for the company file.
IMPORTANT: It is always a good practice to take a backup of the company file on an external storage device like a USB drive. Once the company file is updated, copy it to an external storage device to protect your data from loss or damage. In case if you are unable to locate the company file in QuickBooks installation directory then make sure Hidden Windows Files are set to display from the settings.
Conclusion:
For any reason, if you still cannot update the company file, or the related error messages persist while opening QuickBooks, you can reach us at our direct support number +1- 855 738 2784 for better help and assistance.
FAQs
Why is it crucial to create a company file backup while updating it to the latest version?
It is challenging to revert to an older QB version after updating the company file. Such scenarios may cause you to lose data. Therefore, it is critical to prepare a backup of essential files beforehand.
How to revert to an Older QB version after Updating Company File?
QuickBooks License Manager can help you return to the older QB version after updating the company file. The steps include:
- Get the old version from Intuit’s website.
- Launch QuickBooks and move to the Help menu.
- Here, choose the Manage My License option.
- From the Switch To menu, select the year version of QB.
- Authorize this function by entering valid License and Product numbers in the fields.
- Press OK and let QuickBooks go through the conversion process.
Do I need to pay any fees to upgrade the company file?
Updating and upgrading are two separate things. Updates are available free of cost and are regularly offered by Intuit. Upgrades are different and require separate purchases. However, when it comes to updating company files, it is completely free and needs to be done manually by you.
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