How to Update Your QuickBooks Company File: A Simple Guide

QuickBooks is among the most popular accounting software programs for small and medium-sized businesses.

The bigger your business, the more complex your finances are, and it is necessary to refresh your QuickBooks company files so that there is no interruption.

Refreshing your QuickBooks company file will safeguard your data and make it trustworthy and compatible with new software releases.

If you prefer to update your QuickBooks company file but don’t know where to begin, here’s a guide for the same.

Why Should You Update Your QuickBooks Company File?

Before proceeding with the "how-to" process, let’s understand why it’s a good idea to keep your QuickBooks company file updated:

• Software Compatibility: QuickBooks software updates are typically added in an attempt to introduce new features, enhancements, and security patches. Keeping your company file updated will enable it to run in conjunction with these updates.

• Security: Old company files put your business at risk for loss of data, theft, or corruption. Having an updated company file minimizes this risk.

• Bug Fix & Performance Adjustments: Periodically, QuickBooks updates will correct performance and bugs issues. Current company files put your system in a state of smooth operation and a best-case scenario.

• Accuracy of data: New files ensure that every ledger account, transaction and financial statement is reflected in the machine so one individual has an auditable record of accounts.

• Updating Your QuickBooks Company File:

Here is a step-by-step easy guide on how one can upgrade your QuickBooks company File. Whether you use QuickBooks Desktop or QuickBooks Online, the process will be slightly different, but we’re giving you an overview of both.

For QuickBooks Desktop UsersBackup Your Company File:

• Backup your QuickBooks company file in advance to avoid data loss. To back up the same, go to file>Back Up Company>Create Local Backup.

• Choose Local Backup and then go ahead and save the backup at a safe place.

Download the Latest QuickBooks Updates:

• QuickBooks will remind you automatically whenever there’s an update, but you can also check for regular updatesṅṅ, but you can also check updates manually as well.

• If you need to update it manually, go to Help>Update QuickBooks. Now Click Update.

• QuickBooks can be updated by installing and downloading the updates.

Update Your Company File

After updating to the latest QuickBooks update, QuickBooks will prompt you to update your company file.

If prompted, follow these steps:

• Open your company file in QuickBooks.

• QuickBooks will prompt you to update the company file format to the most recent one. Click Update Now.

• QuickBooks will initiate the update process. This will take a while based on the size and complexity of your company file. Do not interrupt the process.

• Check for Update:

• When the update is complete, you need to check whether the update was successful or not. To check this:

• Go to File> Utilities> Verify Data.

• QuickBooks will inform you that something is incorrect with your company file and ask you to repair it. Repair issues as prompted.

Rebuild Your Data

• In case you do experience issues once you have upgraded your company file, you can rebuild your company file using the Rebuild Data tool.

• Go to File> Utilities> Rebuild Data and go through the wizard to resolve any problems in your data.

For QuickBooks Online Users

It is simpler to keep your company file up to date in QuickBooks Online because the software will do this for you automatically.

That said, there are some steps you can take to keep your company file in its best possible condition.

Backup Your Data:

• Although QuickBooks Online will automatically back up your data, you should export a copy of your company file as a backup.

• Go to Settings> Export Data and choose the data to save. Save as Excel or CSV.

• Make Automatic Updates on

• QuickBooks Online will automatically update, but you can also check the same on the QuickBooks Blog for the latest release notes and update availability status for new features.

• In Account and Settings> Billing & Subscription in Settings, you have to make sure you have installed the latest version of QuickBooks Online.

Update User Permissions

• Depending on the number of users you have within your company, you can then return and change their permissions after installing a software update.

• Proceed to Settings> Manage Users to re-define roles and permission so that all users have a view permission to real information.

QuickBooks Company File Upgrade Problems Solution Guidelines

Although it is always easy to update your company file, there are moments when it is a nightmare.

These are some repairs that you can implement to correct common issues that come up:

Error Messages on Upgrading

• If you're getting error messages every time you try to update QuickBooks, diagnostic tools run from the QuickBooks Tool Hub can put an end to the problem.

• Visit the QuickBooks Tool Hub web page and download the software. From there, you can troubleshoot the update difficulty problem that you're facing.

Data Corruption or File Errors

• You can even use the Verify and Rebuild tools in QuickBooks Desktop to fix a corrupted data or error file. If you've noticed corrupted files after an update, you can choose to call QuickBooks support for QuickBooks Online, and they'll have it fixed for you.

Update Won't Complete:

• If the updating process is cut off or doesn't function, make sure your connection isn't poor. A poor connection will make the updating process cut off.

• You can also try closing down your computer and trying to update.

Explore more about:- How Can QuickBooks Error 6143 Be Rapidly Troubleshot?

Conclusion

You need to update your QuickBooks company file in an attempt to keep your accounting system safe, accurate, and efficient as a part of an attempt to do so.

You either have QuickBooks Desktop or QuickBooks Online, and it's well worth your time to give your company file an occasional update in an attempt to spare yourself a lot of trouble down the line.

Need help updating your QuickBooks company file? Call our expert support team at +1(855)-738–0359 for step-by-step guidance and hassle-free assistance.

Frequently Asked Questions About Updating QuickBooks Company File

What does it mean to update a QuickBooks company file?

Updating a QuickBooks company file means converting it to work with a newer version of QuickBooks Desktop. This is a required step when switching to a more recent edition, and it ensures compatibility with the latest features and security improvements.

When should I update my QuickBooks company file?

You should update your company file immediately after installing a newer version of QuickBooks Desktop. Without updating the file, it won't open in the new version and might display a prompt asking you to upgrade it.

Can I open my company file in an older version after updating it?

No, once a QuickBooks company file has been updated to a newer version, it cannot be opened in any older version. Make sure to create a backup before updating in case you need to revert back.

How do I update a QuickBooks company file safely?

To update your company file, open QuickBooks Desktop, go to the File menu, and select Open or Restore Company. Choose your file, and QuickBooks will prompt you to update it. Confirm and allow the process to complete without interruption.

Will updating my company file delete any data?

No, updating your company file does not delete any data. However, creating a full backup before starting the update process is strongly recommended to prevent data loss in case of unexpected issues.

What should I do if QuickBooks freezes while updating the company file?

If QuickBooks freezes during the update, force close the application, restart your computer, and try again. You can also run the QuickBooks File Doctor from the Tool Hub to check for file damage before attempting another update.

Is it possible to update the company file without admin rights?

No, updating a QuickBooks company file requires admin privileges. You must be logged in as the admin user within the company file to authorize the update and proceed with the conversion.

Can I update a company file located on a network or server?

Yes, but ensure that all users are logged out of the file and that you have full access permissions. It’s best to update the file from the computer where the file is hosted to prevent interruptions.

What if I receive an error while updating the company file?

If you encounter an error during the update, note the error code and use the QuickBooks Tool Hub to run diagnostic tools. You may also contact support at +1(855)-738–0359 for expert troubleshooting assistance.

Does updating a company file affect multi-user mode settings?

No, updating your company file does not impact your multi-user mode settings. However, all users must be logged out during the update, and QuickBooks must be reconfigured for multi-user access after completion.

How long does it take to update a QuickBooks company file?

The update process can take anywhere from a few seconds to several minutes depending on the file size and system speed. Ensure no interruptions occur during this time to avoid corruption.

Should I make a backup before updating my QuickBooks file?

Absolutely, making a full backup before updating is crucial. If anything goes wrong during the update, the backup allows you to restore your data without permanent loss.

Alastor Moody is a tech-savvy accounting professional at Asquare Cloud Hosting who enjoys resolving technical issues.