This Company File Needs to be Updated: A Complete Guide

Encountering the message “This Company File Needs to be Updated” in QuickBooks can disrupt your workflow and cause frustration. In this article, we will explore the reasons behind this message, identify common signs of the issue, discuss essential steps to take before troubleshooting, provide detailed troubleshooting instructions, address frequently asked questions, and offer a toll-free helpline number for QuickBooks Data Services.

Reasons for “This Company File Needs to be Updated”:

  1. QuickBooks Update: If you have recently updated QuickBooks to a newer version, the company file may require an update to align with the updated software.
  2. File Compatibility: Opening a company file created in an older version of QuickBooks with a newer version can trigger the message, as the file needs to be updated to maintain compatibility.
  3. File Corruption: If the company file is corrupted or damaged, QuickBooks may prompt the update message to repair and update the file for proper functionality.

Related Article: QuickBooks Keeps Crashing

Signs of “This Company File Needs to be Updated”:

  1. Error Message: QuickBooks displays a message stating, “This Company File Needs to be Updated” when attempting to open the company file.
  2. File Access Denied: In some cases, you may be unable to access the company file until it is updated, leading to restricted access to your financial data.
  3. File Incompatibility: If you are unable to perform certain functions or encounter errors when working with the company file, it may be a sign that an update is necessary.

Prior Steps before Troubleshooting:

Before troubleshooting the “This Company File Needs to be Updated” issue, follow these preliminary steps:

  1. Create a Backup: Make a backup of your company file to ensure you have a safe copy in case any issues occur during the update process.
  2. Update QuickBooks: Ensure that you are using the latest version of QuickBooks by checking for updates in the software or downloading the latest version from the official QuickBooks website.
  3. Verify System Requirements: Confirm that your system meets the minimum requirements for running the updated version of QuickBooks.

Troubleshooting Steps:

Follow these detailed troubleshooting steps to address the “This Company File Needs to be Updated” issue:

Step 1: Close QuickBooks and Reboot

  • Close QuickBooks and restart your computer to ensure a fresh start for the troubleshooting process.

Step 2: Update QuickBooks Company File

  • Open QuickBooks and select “File” from the menu.
  • Choose “Open or Restore Company” and select the company file that needs to be updated.
  • Follow the on-screen prompts to update the company file to the latest version.

Step 3: Run QuickBooks File Doctor

  • Download and install the QuickBooks File Doctor tool from the official QuickBooks website.
  • Open the tool and select the company file that needs to be updated.
  • Follow the tool’s instructions to diagnose and repair any file-related issues.

Step 4: Restore Backup

  • If the company file remains inaccessible or continues to display the update message, restore the backup you created earlier and try updating it again.

Step 5: Seek Expert Assistance

  • If the issue persists or if you encounter any difficulties during the troubleshooting process, it is advisable to seek help from QuickBooks Data Services.
  • Contact the toll-free helpline number +1-888-704-1357 to connect with QuickBooks experts who can provide further guidance and support.

FAQ (Frequently Asked Questions):

Q1: Will updating QuickBooks resolve the “This Company File Needs to be Updated” message?

A: Yes, updating QuickBooks to the latest version often resolves compatibility issues and ensures that the company file is updated accordingly.

Q2: What should I do if the company file is still inaccessible after updating QuickBooks and running the QuickBooks File Doctor?

A: If the issue persists, you can try restoring a backup of the company file that was created before encountering the error. This can help to revert to a stable version of the file. If you do not have a backup, it is recommended to seek assistance from QuickBooks Data Services for further troubleshooting and support.

Q3: How can I prevent the “This Company File Needs to be Updated” issue in the future?

A: To avoid encountering this issue in the future, make sure to regularly update QuickBooks to the latest version. Additionally, it is crucial to maintain backups of your company files to ensure data integrity and provide a fallback option in case of any unexpected errors or file corruption.


Resolving the “This Company File Needs to be Updated” issue in QuickBooks is essential for uninterrupted access to your financial data. By following the troubleshooting steps outlined in this article, including updating QuickBooks, running the QuickBooks File Doctor, and restoring backups if necessary, you can address the issue effectively. If you encounter any difficulties during the troubleshooting process, do not hesitate to contact QuickBooks Data Services at the toll-free helpline number +1-888-704-1357. Their expert support team is available to provide assistance and ensure that your company file is updated successfully. Keep your financial management seamless with QuickBooks and enjoy uninterrupted access to your company file.

By Olivia Bradley

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