QuickBooks users can easily record new transactions and store them securely as company files in the system storage. Users sometimes run into this company file needs to be updated error message, which stops them from accessing the data file. If your QB also suffers from this data file issue, keep reading further to understand why it develops and the correct methods to eliminate it.

Reach out to our QB support team at +1-855-738-2784 for troubleshooting guidance to resolve the error.

Primary causes of the QuickBooks this file needs to be updated error message

You might run into this error message while opening the company file or performing any related task. The conditions that trigger this company file issue on your QuickBooks are mentioned below-

1. You recently upgraded your QB version and tried running the old company file in the software.
2. QuickBooks cannot connect with the company file due to a non-admin Windows account or insufficient folder permissions.
3. QuickBooks malfunctions while accessing a company file due to damaged Windows components (.NET Framework & MSXML) on your computer.

You May Read Also: How do I fix QBCFMonitorService Not Running On This Computer?

Applicable techniques to prevent QuickBooks Desktop update company file error

You won’t be able to perform data file tasks in QuickBooks until you remove this runtime error from the software. The usable fixes for this data file issue in your QuickBooks are discussed below-

Solution 1- Update your company file to make it compatible with the latest QB Desktop version

QuickBooks might sometimes struggle to run the old company files after you install the latest updates in the software. You cannot run old company files in the upgraded QB Desktop version and cannot perform most of the accounting tasks until the error is removed. You must update your company file along with the software to prevent compatibility issues while accessing financial data after the software is fully updated. We have mentioned the correct steps to update the QB company file below-

1. Run the QB Desktop application and sign out of all the user accounts.
2. Click the File menu and select Open or Restore company option.
3. Tap the Open a company file option and hit Next.
4. Tap Restore a backup copy in case you are trying to restore financial data.
5. Search for your data file name in the list and click Open after highlighting it with a single click.
6. Enter your QB admin account credentials to sign in to the data file and click the Update Now option.
7. Wait until the company file is fully updated and tap Done afterward.
8. Open QuickBooks Desktop again on your computer.

If the error message comes up again after updating the company file, check out the next solution.

Read More: How To Fix QuickBooks Won't Open

Solution 2- Launch your QB Desktop in Admin mode to bypass restrictions

QuickBooks can also display this error code if it fails to connect with the data file due to inappropriate folder permissions. You can tackle the problems by assigning admin rights to QB, as shown below-

1. Type ‘QuickBooks’ in the search panel and open the folder location from the results.
2. Right-click the QuickBooks.exe icon and click the Run as Administrator option.

Conclusion

This blog is a referral guide to learn why this company file needs to be updated error message appears while accessing financial data in QuickBooks. The blog also discussed the effective ways to resolve the error, and we suggest you implement them to open the data files without problems.

Clarify your remaining doubts about the issue by contacting our QB support team at +1-855-738-2784.

Recommended To Read: How To Resolve QuickBooks Error PS038