Best Way To Deal With This Company File Needs To Be Updated
                     Usable Fixes For This 
Company File Needs 
To Be Updated Issue
QuickBooks stores financial data as company files which are very crucial for 
users. But sometimes they get blocked by This Company File Needs To Be 
Updated error message while opening the company file. If you also run into this 
error message while opening a company file on your PC, continue reading this 
informational blog to figure out why it happens and the methods to establish 
contact with the data file without issues.
Get in touch with a team of QB experts at 1-855-856-0042 to quickly sort 
out this error with their assistance.

Reasons
You can randomly run into this message while trying to run your company file. 
This error message appears and stops your company file from opening due to 
the following reasons-
• Your QuickBooks Desktop needs a software update as you run an 
obsolete version.
• Multiple windows were open the last time you closed QuickBooks.
• The company file’s path in your system is broken, and QBDT fails to set up 
a connection with the file.
Solutions
You will lose access to your financial data as this error message will come up 
whenever you open the company file. You can apply the techniques given 
below to resolve the issue and open your company file without problems-
Solution 1- Ensure the company file is in the correct 
format and download the latest QBDT updates
This error mostly comes up when the software doesn’t run properly due to its 
outdated version. The software will generate issues while setting up a contact 
with the company file and show error messages against your attempts. Before 
opening the file again, you must also check that the file exists in .QBW format, 
as the software can face trouble following the same procedure to open other 
file types like .QBB & .QBM. Also check that the file isn’t compressed or 
encrypted, as it creates problems for QBDT. Use the following steps-
• Go to the Help menu of your QBDT and click the Update QuickBooks 
Desktop option.
• Click the Reset Update option below the Update Now tab and single-click 
the Mark All checkbox.
• Click Get Updates and wait until the software update package is 
downloaded to your system.
• Reopen the software and follow the instructions to install the updates.
After the software is updated, go to your company file and apply the following 
steps-
• Right-click the data file and select Properties.
• Go to the Advanced tab and ensure the Compress and Encrypt 
checkboxes are unmarked.
• Tap Ok and open the company file in QuickBooks.
If you still fail to access the financial data on the file, move to the next solution.
Solution 2- Turn off Save the Desktop option in QB 
preference
We all know that QB tries to open all the Windows you left open while closing the 
software. You will run into this issue if you had multiple Windows opened the last 
time you closed QuickBooks and the software failed to open the Windows when 
you tried running the software now. You can tackle the issue by configuring QB 
preferences as shown in the steps mentioned below-
• Approach the Edit menu of your QB Desktop and select Preferences.
• Click the Desktop View option and select Don’t save the Desktop.
• Press Ok and try opening the company files again.
Conclusion
We have reached the end of this blog explaining why you encounter 
This Company File Needs To Be Updated message while accessing a data file. 
The methods to counter the data file issue are also mentioned in the blog, which 
you can use to eliminate the problem from your QBDT easily.
Speak to a QB support team at 1-855-856-0042 to clarify your remaining queries 
about the issue.