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QuickBooks is an accounting software that small and mid-sized businesses use to record transactions precisely. But the users can sometimes encounter QuickBooks desktop need to update your company file error when they upgrade the software. In case you are also unable to access the company file due to this message, read this entire blog to figure out why the error develops and the techniques you can apply to fix the issue.

Let our QB support team assist you in troubleshooting by approaching them at 1-855-856-0042.

Reasons for the company file needs to be updated error

After upgrading your QB version, you’ll run into this error message when you try to open the company file. The reasons for the failure to open the company file are discussed below-

1. Your QB version has been upgraded but you still try to access the outdated data file.
   

2. Your company file contains invalid symbols, or its location is inaccessible to QB.
   

3. The company file is compressed or encrypted, which isn’t readable for QuickBooks.
   

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Solutions when QuickBooks prompts to update the company file

You must also update your data file whenever you upgrade your QB version; otherwise, you’ll keep running into this error message. The method to eliminate the data file issue quickly from your QBDT are mentioned below-

Solution- Ensure your data file isn’t encrypted or compressed and find its location

You can face problems opening a data file if it is in an encrypted or compressed format as QuickBooks processes the file. This error message also comes when you try running an outdated data file after upgrading your QuickBooks. You need to update your company file every time you upgrade your software version. You must also know your company file location, which’ll be needed when you update the data file. You need to apply the following steps to ensure your company file is accessible for QBDT-

1. Open your QB and go to the product information window by pressing F2.
   

2. Go to the File Information section in its window to find the location of the company file.
   

3. Open the file explorer to visit the data file’s location.
   

4. Right-click on your company file and select the Properties option in the list.
   

5. Navigate to the Advanced tab and unmark the Encrypt and Compress checkboxes.
   

Now, your company file is completely accessible to QB, and you can proceed to update it as shown in these steps-

1. Launch your QBDT and sign out from all your user accounts.
   

2. Open the new QB version on your system and click the File menu.
   

3. Tap the Open or Restore the company option and click Open a company file.
   

4. If you are updating a backup file, select the Restore a backup copy option and then hit Next.
   

5. Enter the location of the file and select Open.
   

6. Sign in to your data file using admin account credentials.
   

7. Tap Update Now and wait until your data file is completely updated.
   

Be mindful not to stop the company file update in between, as it may result in data damage or loss.

Conclusion

This blog summarizes the causes of the QuickBooks desktop need to update your company file error message coming up when you try accessing your financial data. The solutions for this issue are also mentioned in the blog which you can use to prevent the company file issues in the future.

Speak to our QB support team at 1-855-856-0042 to resolve your remaining queries about the issue.

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