QuickBooks Company File Needs To Be Updated! Here’s What To Do

In case you have upgraded your QuickBooks Desktop application to a newer version in recent days, then you might be getting an error message on the computer screen stating, “QuickBooks company file needs to be updated” or “QuickBooks needs to update your company file” every time trying to open the company files.

QuickBooks is designed to open a company file that is of the exact same release it is or from a previous release. In such instances where the versions of the company file and QuickBooks Desktop are not compatible, QuickBooks throws an error message recommending users to update their company files. With this post, we are going to explain to you the entire procedure of how to update your company file, that too in layman’s language.

For instant troubleshooting assistance to get over the QuickBooks Company File Needs To Be Updated message, feel free to speak to our QuickBooks professionals at (855)-856-0042.

How to Get Rid of QuickBooks Company File Needs To Be Update Message?

Step 1) Run the Rebuild tool to prepare your company file for the upgrade

Verify and rebuild data utility tools helps if your company file have any data integrity issue.

  • Open QuickBooks Desktop.
  • Move to the File menu.
  • Hover over the Utilities option in the drop-down menu.
  • From the side list, select the Rebuild Data option.
  • When QuickBooks prompts you to create a backup copy of the company file. Select the Yes option and follow the on-screen steps.
  • The Rebuild Data utility will automatically start once creating a backup company file is finish.
  • When you get the notification stating, “Rebuild has completed,” select the OK button.

Step 2) Upgrade your QuickBooks Desktop company file

  • At first, make certain no user is log in to your company file.
  • Open QuickBooks Desktop of the new release.
  • Navigate to the File menu (located at the uppermost bar).
  • From the drop-down list, pick the Open or Restore Company option.
  • Select the Open a company file option and then click on the Next button.
    Note: In case you have a backup copy of the company file, pick the Restore a backup copy and then Local backup option.
  • Look for the company file on your computer and select it.
  • Click on the Open button.
  • Sign in to your company using the admin account.
  • Click on the Update Now button to start upgrading your company file.
  • When QuickBooks Desktop is finish upgrading the company file, select the ok button.

After that, make sure to download and install the most recent updates of your QuickBooks Desktop application. After updating your QuickBooks Desktop. try to open your company file and see whether you get any error messages this time.


In case you fail to get rid of the QuickBooks, This Company File Needs to Be Updated message even after following the steps that we have mentioned above in the post, then we suggest you get additional troubleshooting assistance rectifying it by contacting our QuickBooks professionals at (855)-856-0042. Our QuickBooks support team has years of experience in error solving and will make the entire troubleshooting procedure a piece of cake for you.

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