QuickBooks users are liable to encounter issues while opening a company file in the upgraded software version. The software notifies you that this company file needs to be updated whenever you try accessing the business data. If your QB also displays this error message, go through the blog to figure out the causes and applicable solutions for the issue.

Get this issue resolved by our QB support team, available for your assistance at 1-855-856-0042.

Here’s why you run into QuickBooks file needs to be updated error message

You mostly face this problem when you upgrade your QB Desktop version and try to run an old company file. Some other factors that can trigger this data file issue are mentioned below-

• QuickBooks doesn’t have the proper permissions required to access the company file stored in a restricted location.
• The upgraded QB version isn’t compatible with the old version of the company file due to its unreadable format.
• The data file location entered in QuickBooks is incorrect, and the software develops issues when it can’t find the file.

Practical solutions for QB company file needs to be updated error

You cannot open the company file or run accounting tasks in QuickBooks until you kick out the error from your system. Some reliable methods to prevent the data file error from developing again are discussed below-

Solution 1- Sign in to QBDT as admin and update your company file

You cannot open an old version of the company file if you have upgraded your QB version recently. The company files are mostly updated automatically as the software can’t process an obsolete data file. Another reason for this error can be restricted access to the company file, which you can bypass by running QuickBooks in admin mode. If you missed the company file update prompt while upgrading your QB version, apply the following steps to do it manually-

1. Launch the file explorer and go to the QB folder.
2. Right-click QB’s launch icon (QuickBooks.exe) and click the Run as Administrator
3. Access the software’s File menu and click the Open or Restore company
4. Choose Open a company file and hit the Next
5. Single-tap the data file and click Open.
6. Read the details mentioned in the Update company file for the new version window and acknowledge it by marking the checkbox with a single click.
7. Hit Update Now and update the company file using the instructions provided on the screen.
8. Wait until the file is completely updated and try to open it in QuickBooks.

If the error message comes up after updating the data file, move to the next solution.

Really helpful to learn : Let's Fix QuickBooks Subscription Has Lapsed

Solution 2- Erase invalid symbols from the data file name

QuickBooks can also develop issues while opening a data file if its name contains invalid symbols and characters forbidden by UNC. You must rename the data file using the following steps to prevent the error-

1. Right-click on your QB data file and tap the Rename
2. Delete special symbols like <, |, >, &, % from the file name and ensure the name isn’t too long.
3. Save the file and launch your QBDT.

Conclusion

This blog thoroughly explains why this company file needs to be updated error message stops you from accessing financial data. The practical techniques to remove the error are also mentioned in the blog, and we hope you use them to update your data file without problems.

Talk to our QB support team at 1-855-856-0042 for further assistance in the troubleshooting.

You May Read Also : How To Fix QBCFMonitorService Keeps Stopping Issue