Have you just upgraded your QuickBooks to a higher version? While getting a higher version of the software, you must ensure that your company file is still compatible and that you can access the data without any failure.
However, the situation is just the opposite, and the company file fails to open or other errors such as
“QuickBooks company file needs to be updated.”
or
“QuickBooks Desktop needs to update your company file.”
In such a challenging situation, you all need to update QuickBooks company file to a higher version to ensure software compatibility and seamless functioning. Check out this detailed guide for relevant information on updates.
Learn How to Upgrade QuickBooks Company File to a Newer Version
The steps below allow you to access your financial data and perform accounting operations. Without updating, the old company file cannot be recognized or accessed in the new QuickBooks version.
Prerequisites to consider
- Create a company file backup in QuickBooks
- Make sure all users are signed out and you have administrator rights
- If there are any issues, consider verifying and rebuilding your data
Step 1: Prep your company file
For a successful company file upgrade, you must ensure the data file is prepared and you have all the information gathered to activate it.
- Launch the original version of QuickBooks not the workstations.
- Open the company file that you want to update.
- Open the Product Information window by pressing the F2 key.
- Scroll down to the File Information section.
- Now, note down the location where you to save the updates company file on your computer.
| Important: Do you host your company files on a multi-user network? Easily move your company files to your system’s local hard drive. You can move them back after opening them in the new version of QuickBooks Desktop. |
Read More- QuickBooks Crashes When Opening Company File
Step 2: Update your company file
| Note: Best-in-class security is provided by QuickBooks Desktop 2024 and Enterprise 24.0 to protect your data. You must change all non-admin users’ passwords to temporary ones after updating your company file to QuickBooks 2024 or Enterprise 24.0. Non-admin users will be asked to create a permanent password when they log in. |
- Make sure every user is signed out of QuickBooks (server and workstations).
- Now, open the new version of QuickBooks Desktop.
- Navigate to the File menu and select Open or Restore Company.
- Hit on Open a company file, then Next.
- In case you already have the backup copy of your company file (QBB) instead of a company file (QBW), select Restore a backup copy.
- Look for the original company file and select it. Then, click Open.
| Note: Failed to find your QuickBooks company file? Launch the Windows Start menu and open File Explorer. Look for a data file with the .qbw file extension. If you still can’t see it, make sure the file is not saved in hidden folders. |
- Now, sign in to your company file as an admin.
Also Read- QuickBooks Cannot Communicate with the Company File due to firewall
Optional: QuickBooks Desktop automatically creates a company file backup of the existing file. To save the backup in any specific folder, you can select Change this default location.
- Hit on Update Now.
- Once the process is complete, select Open.
| Note: If the move fails and you can’t open the file, restore the backup from step 6 and try again. If you still fail to move the file, contact customer support. |
Now, you can finally open your company file in the newer version of QuickBooks Desktop. In case you host your company file on the network, you can move them back.
Summary
So, this is the end of this blog covering how to update QuickBooks company file and what are the necessary steps you must take for a successful update.
We hope the company file is working fine with the current version of the software and that you can open it without any errors. However, if you still encounter any issues or fail to get the higher version, it is recommended that you consult experts. Just give us a call on +1-866-409-5111 and talk to a QuickBooks ProAdvisor now!
Frequently Asked Questions
When you rebuild your company file data, it performs a quick repair of your company file, but be sure to run the Verify Data utility. If errors are found, then proceed to rebuild the data, making sure you back up your company file before beginning the rebuild process. After rebuilding, verify the file again to confirm that the errors are resolved.
The latest company file version in QuickBooks Desktop is QuickBooks Desktop 2024. This also includes the Enterprise 24.0 version. Intuit has switched to more frequent release updates instead of a single annual release.
It’s generally not possible to downgrade a QuickBooks Desktop company file to an earlier version, because the upgrade process is irreversible. However, you can create a new company file in the older version and enter the data manually or use a third-party conversion service.
You can either start a new file from an existing file or use the “Condense Data” utility to delete old transactions. Starting a new file preserves essential data while deleting old transactions, while Condense Data allows selective deletion of transactions and audit trail information.
