How to fix ‘This Company File Needs to be Updated’ Error ?

Stuck with the warning message, “This Company File Needs to be Updated” or “QuickBooks Needs to update your company file”, but do not know what to do? Firstly, you must understand when and why you receive such an error. So moving on, when you update your QuickBooks to a newer version, you can encounter the issue. It is because the company file does not get updated spontaneously after the QuickBooks update. You need to update it separately. Hence, this article explains how to update the company file so that you can operate it again.

If you face challenges while updating the company file, feel free to reach out to our team of experts through 1.800.579.0391.

Important Points to Consider Before Updating the Company File in QuickBooks

Here are some guidelines you must go through before performing the update process of your company file-

1. Always check whether you have signed in as an administrator to your QuickBooks Desktop account or not. If yes, only then proceed towards updating the company file. If not, sign in as an admin user first.
2. Ensure that the server and workstations are not operating the data file while the update process is being carried out.
3. If you have saved the company file on a workstation, copy it on the server and then update it. After it is done, you can transfer the data file to the former system.

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Effective Ways to Troubleshoot the QuickBooks Desktop Company File Update Error

The following solutions will help you to get rid of the issue rapidly. All you need to do is perform these solutions appropriately-

SOLUTION 1: Jump to a Higher Version of QuickBooks Company File

1. Make sure to update your version of QuickBooks first. Once updated, run the application.
2. On the ‘File’ tab, hit ‘Open or Restore Company File’.
3. After that, choose ‘Open a company file’ and then ‘Next’.
4. On the ‘Browse’ option, search for your company file and access it.
5. On the ‘Move Company File’ and ‘Update Company File’ windows, hit the ‘Update Now’ option.
6. Now, you are required to make a similar copy of the company file and save it in a folder.
7. At last, open the saved data file by tapping ‘Yes’ on the on-screen message.

SOLUTION 2: Make Use of the Inbuilt ‘Rebuild Data’ Tool in QuickBooks Desktop to Update the Data File

1. Run your updated QuickBooks Desktop and select the company file for the update process.
2. Now, move to the ‘File’ tab and hit the ‘Utilities’ option.
3. Tap on ‘Verify Data’ and if after that, you receive a message that says, “Your data has lost integrity”, run the rebuild tool.
4. Again, move to the ‘File’ menu and then ‘Utilities’.
5. Hit the ‘Rebuild Data’ tool, and if asked whether to backup your company file or not, select ‘Yes’.
6. Choose a folder to store the company file back so that you can conveniently access it later.
7. Once the backup has been taken, the tool scans for the issues and rectifies them.
8. After it is done, a message will pop up on the screen, “Rebuild has completed”.
9. Tap ‘OK’ to end the process.

So, we hope by taking reference from this article on ‘This Company File Needs to be Updated” error, you must have updated the company file successfully. However, if you mistakenly skip a step, the update will not be completed. If you face any trouble while carrying out the process, immediately have a conversation with one of our professionals at 1.800.579.0391.

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