Fixes for ‘this company file needs to be updated issue’ in QuickBooks

QuickBooks is a bookkeeping software designed to assist small businesses by overseeing the finance and other departments. QuickBooks is indeed a dependable software that can efficiently execute accounting and helps the users to keep track of their business at any instant. Despite all these abilities, this software is still not reluctant to random errors. Some issues can block your company file access and show a message that this company file needs to be updated. If you are dealing with the same problem in your QuickBooks, keep reading the blog for the triggers to this issue and methods to resolve them from your software.

You can dial +1-855-856-0042 for time-saving bits of advice from QB experts.

About the issue##

The data in your QuickBooks is stored in the form of company files. This issue troubles you while trying to open your company file. You’ll be prompted to update the file, and till then, you won’t be able to access it. It might be possible that you recently switched to a different version of QuickBooks; if that’s not the case, you needn’t worry because your data is secure, and this happened just because of some minor fault in the settings.

Reasons##

The reasons which can be held responsible for this issue in QuickBooks are-

1. If your file is updated, it might have been damaged due to data corruption in your hard disk or a possible virus attack.
2. The folder permissions are blocking QuickBooks from accessing the company file.
3. The last update was damaged or faulty.

You may like to read: QuickBooks Error OL 222

Solutions##

The methods you can use to fix this error are-

Solution 1- Login as Admin User and update your company file###

Try to update your file using the Administrator account with special permissions is helpful while tackling these issues. Follow the steps mentioned below-

1. Login in from your Admin account and open your QuickBooks in the system facing issues.
2. Click on File and select Open or restore company.
3. Select Open a company file and then tap Next.
4. Click on your company file and select Open.
5. Go through the message in the Update company File for the new version window, click on the checkbox to ensure you have acknowledged it, and click Update Now.
6. Follow the on-screen instructions, backup your file, and wait for the process to finish.
7. After the process is finished, reopen QuickBooks.

Try the next solution if you still face any issues after updating the file.

Solution 2- Go to the folder containing your company file and change the folder permissions###

This issue can also occur if some folder permissions are interfering with QuickBooks while accessing the company file-

1. Locate the folder carrying your company file.
2. Right-click on the folder and select properties from the list.
3. Under the Security tab, choose the user account having the problem and click Edit.
4. Allow all the permissions like Modify, read, write, List folder contents, Read & execute or click the checkbox for full control.
5. Click Apply and reopen QuickBooks.

If you are still facing issues with the company file, the problem can be in QuickBooks itself. Move on to the next solution.

Also read: QuickBooks password crack

Solution 3- Use Quick Fix my program to repair QuickBooks###

Always use the newest version of the QuickBooks tool hub on your computer. If you already have it, refer to the steps for repairing your QuickBooks-

1. Open the QuickBooks Tool hub and click on Installation Issues.
2. Run the Install Diagnostic Tool from the options.
3. Reopen QuickBooks after the process is finished.

Your issues will be fixed after applying these methods.

Also see: QuickBooks multi-user mode not working

Closure##

We discussed why you were prompted with the message, ‘this company file needs to be updated’ while opening your company file. You now know the methods you can use to rectify this issue from your QuickBooks.

Dial +1-855-856-0042 for further assistance with this issue.