Multi-UserNetwork

Multi-User Not Working

Updated: October 28, 2025
22 minutes read
12 sections
QuickBooks Desktop 2024QuickBooks Desktop 2023QuickBooks Desktop 2022

Understanding Multi-User Mode

QuickBooks multi-user mode allows multiple users to access and work in the same company file simultaneously. This mode requires specific network configuration, proper hosting setup, and the QuickBooks Database Server Manager running on the server machine. When multi-user mode fails, users typically see errors like "You are attempting to work with a QuickBooks company file that is on a network drive" or "Switch to multi-user mode failed."

Multi-User Requirements

Multi-user mode requires QuickBooks Desktop Pro, Premier, Enterprise, or Accountant edition. Simple Start does not support multi-user access. All workstations must be on the same local network (LAN), and the company file must be hosted on a server or designated workstation with Database Server Manager installed.

Common Causes of Multi-User Failures

Primary Failure Points

  • Database Server Manager not running: The hosting service must be active on the server machine
  • Incorrect hosting configuration: Only one machine should host the company file
  • Firewall blocking ports: QuickBooks requires specific ports open for multi-user communication
  • Network permissions issues: Users need proper read/write permissions on the company file folder
  • ND files damaged or missing: QuickBooks creates .ND (Network Data) files that can become corrupted
  • Version mismatches: All workstations must use the same QuickBooks version and release

Step 1: Check Hosting Configuration

One of the most common multi-user issues is multiple machines trying to host the company file simultaneously, or the wrong machine attempting to host. Only the server or designated workstation where the company file physically resides should have hosting enabled.

On Each Workstation (NOT the Server)

  • 1
    Open QuickBooks and the company file

    Launch QuickBooks Desktop and open the company file in single-user mode. If you cannot open in single-user mode, continue anyway.

  • 2
    Check hosting settings

    Go to File > Utilities. If you see "Stop Hosting Multi-User Access", this workstation is incorrectly hosting:

    • Click "Stop Hosting Multi-User Access"
    • Close QuickBooks completely
    • Reopen and verify hosting is stopped (menu should now say "Host Multi-User Access")

    Do Not Click 'Host Multi-User Access'

    On workstations, you should see "Host Multi-User Access" in the menu but never click it. Only the server should host.

  • 3
    Repeat for all workstations

    Ensure every workstation has hosting disabled. Multiple machines hosting simultaneously will prevent multi-user mode from working.

  • On the Server (Where File is Stored)

  • 1
    Enable hosting on the server

    Open QuickBooks on the server machine and open the company file. Go to File > Utilities:

    • If you see "Host Multi-User Access", click it to enable hosting
    • If you see "Stop Hosting Multi-User Access", hosting is already enabled (correct)
    • Close and reopen QuickBooks to confirm the setting persists
  • Step 2: Verify Database Server Manager is Running

    QuickBooks Database Server Manager is a background service that manages multi-user access. It must be installed and running on the server machine (the computer hosting the company file). This is separate from the QuickBooks Desktop application.

  • 1
    Check if Database Server Manager is installed

    On the server machine:

    • Press Windows key and search for "Database Server Manager"
    • If found, launch it. If not found, you need to install it
    • Alternatively, check C:\Program Files\Intuit\QuickBooks [Year]\ for QBServerUtilityMgr.exe
  • 2
    Install Database Server Manager if missing

    If Database Server Manager is not installed:

    • Run the QuickBooks installer
    • Choose "Custom and Network Options"
    • Select "I'll be using QuickBooks on this computer AND I'll be storing our company file here so it can be shared over our network"
    • Complete the installation
  • 3
    Configure Database Server Manager

    Launch Database Server Manager and configure:

    • Click the "Scan Folders" tab
    • Click "Add Folder" and browse to the folder containing your .QBW company files
    • Click "Scan" and wait for the process to complete
    • Verify company files appear in the list with status "Running"
  • 4
    Verify the service is running

    Confirm the QuickBooks Database Server service is active:

    1. Press Windows key + R
    2. Type: services.msc
    3. Press Enter
    4. Find "QuickBooksDBXX" (XX = your version year)
    5. Status should be "Running"
    6. Startup Type should be "Automatic"

    If the service is not running, right-click it and select "Start". If it fails to start, check Windows Event Viewer for error details.

  • Step 3: Configure Firewall and Ports

    QuickBooks multi-user mode requires specific network ports to be open on both the server and workstations. Firewalls (Windows Firewall, third-party antivirus, or network firewalls) often block these ports, preventing multi-user connectivity.

    Required Ports for QuickBooks

    • Port 8019: QuickBooks Database Server Manager
    • Port 56728 through 56778: Multi-user communication (51 ports)
    • Port 55378-55382: QuickBooks Desktop application data
  • 1
    Configure Windows Firewall on server

    On the server machine, add firewall exceptions:

    1. Open Windows Firewall (search "Windows Defender Firewall")
    2. Click "Advanced settings"
    3. Click "Inbound Rules" > "New Rule"
    4. Select "Port" > Next
    5. TCP, Specific ports: 8019, 55378-55382, 56728-56778
    6. Allow the connection > Next
    7. Apply to Domain, Private, Public > Next
    8. Name: "QuickBooks Multi-User Ports" > Finish
    9. Repeat for "Outbound Rules"
  • 2
    Add QuickBooks programs to firewall

    Create additional rules for QuickBooks executables:

    • QBW32.exe (main QuickBooks executable)
    • QBDBMgrN.exe (Database Manager)
    • QBCFMonitorService.exe (monitoring service)

    Location: C:\Program Files\Intuit\QuickBooks [Year]\

  • 3
    Configure third-party antivirus/firewall

    If you use Norton, McAfee, Kaspersky, or other security software:

    • Add QuickBooks folder to antivirus exclusions
    • Add ports 8019, 55378-55382, 56728-56778 to firewall exceptions
    • Temporarily disable firewall to test if it's the cause
  • Network Firewalls

    If your office uses a network firewall or router with firewall capabilities, work with your IT administrator to ensure QuickBooks ports are open between the server and workstations.

    Step 4: Verify Network Permissions

    All users accessing the company file need proper Windows file permissions on both the folder containing the company file and the file itself. Insufficient permissions cause multi-user failures with cryptic error messages.

  • 1
    Set folder permissions on the server

    On the server, navigate to the folder containing company files:

    1. Right-click the company file folder
    2. Properties > Sharing tab > Advanced Sharing
    3. Check "Share this folder"
    4. Click "Permissions"
    5. Add "Everyone" or specific user accounts
    6. Grant "Full Control" > Apply > OK
  • 2
    Set NTFS security permissions

    On the same folder, configure NTFS permissions:

    1. Right-click folder > Properties > Security tab
    2. Click "Edit" > "Add"
    3. Type "Everyone" (or specific users) > Check Names > OK
    4. Select user and check "Full Control" > Apply > OK

    User-Specific Permissions

    For better security, grant permissions to specific domain/workgroup user accounts instead of "Everyone". Each workstation user must log in with their Windows credentials.

  • 3
    Test access from workstation

    From a workstation, verify file access:

    1. Open File Explorer
    2. Type in address bar: \ServerNameShareName
    3. You should see the company file folder
    4. Right-click the .QBW file > Properties
    5. Confirm you can modify the file (not read-only)
  • Step 5: Delete and Recreate .ND and .TLG Files

    QuickBooks creates supporting files alongside the company file (.QBW). The .ND (Network Data) file stores network configuration, and the .TLG (Transaction Log) file tracks changes. If these files become corrupted, multi-user mode fails.

    Close QuickBooks First

    Before deleting these files, close QuickBooks on ALL machines (server and workstations). QuickBooks will automatically recreate these files when you reopen the company file.

  • 1
    Close QuickBooks everywhere

    Ensure no users have QuickBooks open. On the server, check Task Manager (Ctrl+Shift+Esc) to verify no QBW32.exe processes are running.

  • 2
    Show file extensions

    Enable file extensions in File Explorer:

    1. Open File Explorer
    2. Click View tab
    3. Check "File name extensions"
  • 3
    Delete .ND and .TLG files

    Navigate to the company file folder on the server:

    • Find CompanyFileName.qbw.nd (delete this file)
    • Find CompanyFileName.qbw.tlg (delete this file)
    • Also delete any .ND.OLD or .TLG.OLD files

    Cannot See Files?

    If you don't see .ND or .TLG files, they may not exist yet or are hidden. Enable "Show hidden files" in File Explorer View settings.

  • 4
    Rescan in Database Server Manager

    On the server:

    • Open QuickBooks Database Server Manager
    • Go to "Scan Folders" tab
    • Select the company file folder
    • Click "Scan" and wait for completion
    • New .ND files will be created automatically
  • 5
    Test multi-user mode

    Open QuickBooks on the server, then try switching to multi-user mode. If successful, have workstations connect to the company file.

  • Step 6: Use QuickBooks Connection Diagnostic Tool

    The QuickBooks Connection Diagnostic Tool automatically diagnoses and repairs network issues, firewall settings, and component registrations that affect multi-user mode. This tool is part of the QuickBooks Tool Hub.

  • 1
    Download Tool Hub

    If you don't have Tool Hub installed:

    • Search "QuickBooks Tool Hub" on Intuit's website
    • Download and run QuickBooksToolHub.exe
    • Install on both server and workstations
  • 2
    Run QuickBooks Connection Diagnostic Tool

    Launch Tool Hub and:

    1. Open QuickBooks Tool Hub
    2. Select "Network Issues" tab
    3. Click "QuickBooks Connection Diagnostic Tool"
    4. Wait 20-45 minutes for full scan (do not interrupt)
    5. Review results when complete
    6. Restart computer if prompted
  • 3
    Run on all machines

    For best results, run the Connection Diagnostic Tool on the server first, then on each workstation. This ensures all network components are properly configured across the entire network.

  • Common Error Messages and Solutions

    Error H202: Your company file needs to be updated

    QuickBooks cannot communicate with the server hosting the company file.

    Resolution Steps:
    1. 1.
      Verify Database Server Manager is running on the server
    2. 2.
      Delete .ND and .TLG files and rescan with Database Server Manager
    3. 3.
      Check firewall settings on server and workstation
    4. 4.
      Verify hosting is only enabled on the server machine
    5. 5.
      Run QuickBooks Connection Diagnostic Tool

    Error H303: Unable to contact the server

    The workstation cannot connect to the server over the network.

    Resolution Steps:
    1. 1.
      Ping the server from workstation: ping [ServerName]
    2. 2.
      Verify network cable connections are secure
    3. 3.
      Check Windows Firewall settings on both machines
    4. 4.
      Ensure company file folder is shared with proper permissions
    5. 5.
      Map network drive to company file location on workstation

    Error H505: The connection to the company file has been lost

    Network connection was interrupted or server became unavailable.

    Resolution Steps:
    1. 1.
      Check network stability (ping server continuously)
    2. 2.
      Verify server is not going to sleep or hibernation
    3. 3.
      Check for network switch or router issues
    4. 4.
      Disable power management on network adapters
    5. 5.
      Update network adapter drivers on server and workstations

    Error: "This company file is on another computer, and QuickBooks needs some help connecting"

    This error indicates the workstation cannot locate or access the company file on the server.

    • Verify the company file path is correct (use UNC path: \\ServerName\Share\File.qbw)
    • Ensure Database Server Manager scanned the folder containing the company file
    • Check that hosting is enabled on the server
    • Confirm workstation can access the network share

    Error: "The file exists on another computer"

    QuickBooks detected the file on a network location but cannot establish multi-user connection.

    • Stop hosting on all workstations (File > Utilities > Stop Hosting Multi-User Access)
    • Enable hosting only on the server machine
    • Delete .ND files and rescan with Database Server Manager
    • Ensure workstation QuickBooks version matches server version

    Advanced: Mapped Drives vs. UNC Paths

    When connecting to a company file on a server, you can use either a mapped drive letter (Z:\CompanyFile.qbw) or a UNC path (\\ServerName\Share\CompanyFile.qbw). UNC paths are more reliable for multi-user environments.

    Mapped Drive (Z:)

    User-specific drive mapping that may not persist across reboots.

    ✓ Easy to remember (Z:FilesCompany.qbw)
    ✓ Works for single-user scenarios
    ✗ Mappings can break after Windows updates
    ✗ Each user must map the same drive letter
    ✗ Drive letters may conflict between users

    Recommended for:

    Small offices with 2-3 users and stable network

    UNC Path (\\Server\Share)

    Direct network path that uses server name and share name.

    ✓ Consistent across all users
    ✓ Survives reboots and updates
    ✓ Recommended by Intuit for multi-user
    ✓ Works with Database Server Manager
    ✗ Longer path name (slightly less convenient)

    Recommended for:

    All multi-user environments, especially 4+ users

  • 1
    Convert mapped drive to UNC path

    If you're currently using a mapped drive:

    1. Close QuickBooks on all machines
    2. On workstation, open File Explorer
    3. Right-click mapped drive > Disconnect
    4. Click address bar and type: \ServerNameShareName
    5. Navigate to company file location
    6. Open QuickBooks and browse to file using this UNC path
    7. Add company file to "Open Previous Company" list
  • Finding Your UNC Path

    To find the UNC path of a mapped drive:

    net use

    This command shows all network connections and their UNC paths.

    Version Compatibility Issues

    All machines accessing the same company file must run the exact same version of QuickBooks Desktop, including the same release number (e.g., R8, R12). Version mismatches cause multi-user connection failures and file corruption.

  • 1
    Check QuickBooks version on each machine

    On each computer:

    1. Open QuickBooks Desktop
    2. Press F2 (or Ctrl+1)
    3. Look at top line: "QuickBooks Desktop [Edition] 2024 Release R12"
    4. Record the edition, year, and release number
    5. Compare with other machines
  • 2
    Update all machines to same version

    If versions differ:

    • Go to Help > Update QuickBooks Desktop
    • Click "Update Now" tab
    • Check "Reset Update" box
    • Click "Get Updates"
    • Restart QuickBooks when prompted
    • Repeat on all machines until versions match exactly
  • Company File Version

    If the company file was opened with a newer version of QuickBooks, older versions cannot access it. You must update all machines to at least the version that last opened the file. Check the company file version by pressing F2 in QuickBooks with the file open.

    Testing Multi-User Connectivity

    After making configuration changes, systematically test multi-user connectivity to confirm everything works correctly.

  • 1
    Test from server

    On the server machine:

    • Open QuickBooks and open the company file
    • Go to File > Switch to Multi-user Mode
    • If it switches successfully without error, hosting is working
    • Verify File > Utilities shows "Stop Hosting Multi-User Access"
  • 2
    Test from first workstation

    On a workstation:

    • Open QuickBooks
    • Open company file using UNC path (\\ServerName\Share\File.qbw)
    • If prompted, switch to multi-user mode
    • Verify you can access and edit data (create a test invoice)
  • 3
    Test simultaneous access

    With both server and workstation having the file open:

    • On server: Create a customer
    • On workstation: Refresh customer list (F5) and verify new customer appears
    • On workstation: Create an invoice
    • On server: Check invoice list for the new invoice
    • This confirms real-time data synchronization is working
  • 4
    Add remaining workstations

    After confirming the first workstation works, add additional workstations one at a time, testing each before adding the next.

  • Prevention and Best Practices

    Server Configuration

    • Dedicated server or workstation: Use a reliable machine as the permanent host for company files
    • Keep server running: Disable sleep, hibernation, and automatic restarts on the server
    • Stable network: Use wired Ethernet connections, avoid Wi-Fi for server/workstations when possible
    • Regular Windows updates: Keep server and workstation Windows OS updated for security and stability

    QuickBooks Maintenance

    • Synchronize QuickBooks versions: Update all machines together when new releases are available
    • Monitor Database Server Manager: Periodically check that the service is running and company files are listed
    • Scheduled maintenance: Perform weekly Verify Data utility to catch corruption early
    • Document your configuration: Keep notes on server name, file paths, network settings for future troubleshooting

    User Management

    • Proper QuickBooks user roles: Configure appropriate permissions within QuickBooks (Company > Set Up Users)
    • Windows authentication: Each user should log into Windows with their own account for audit trails
    • Close QuickBooks when done: Train users to properly close QuickBooks (not just minimize) to release file locks
    • Single-user mode for maintenance: Switch to single-user mode (File > Switch to Single-user Mode) when performing maintenance

    When to Get Professional Help

    Multi-user connectivity issues can become complex when dealing with sophisticated network environments, domain controllers, or persistent errors after following all troubleshooting steps.

    Consider Professional IT Support If:

    • You have a complex network with domain controllers, VLANs, or managed switches
    • Multi-user mode worked previously but stopped after infrastructure changes
    • You've followed all troubleshooting steps but still cannot connect
    • Database Server Manager service fails to start or repeatedly crashes
    • You need to migrate QuickBooks to a new server

    Need Professional Implementation?

    For complex deployments or enterprise implementations requiring expert assistance, GME Inc. provides professional QuickBooks consulting services.

    Contact GME Inc. for Professional Services