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)
Launch QuickBooks Desktop and open the company file in single-user mode. If you cannot open in single-user mode, continue anyway.
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.
Ensure every workstation has hosting disabled. Multiple machines hosting simultaneously will prevent multi-user mode from working.
On the Server (Where File is Stored)
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.
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
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
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"
Confirm the QuickBooks Database Server service is active:
1. Press Windows key + R2. Type: services.msc3. Press Enter4. 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
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" > Next5. TCP, Specific ports: 8019, 55378-55382, 56728-567786. Allow the connection > Next7. Apply to Domain, Private, Public > Next8. Name: "QuickBooks Multi-User Ports" > Finish9. Repeat for "Outbound Rules"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]\
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.
On the server, navigate to the folder containing company files:
1. Right-click the company file folder2. Properties > Sharing tab > Advanced Sharing3. Check "Share this folder"4. Click "Permissions"5. Add "Everyone" or specific user accounts6. Grant "Full Control" > Apply > OKOn the same folder, configure NTFS permissions:
1. Right-click folder > Properties > Security tab2. Click "Edit" > "Add"3. Type "Everyone" (or specific users) > Check Names > OK4. Select user and check "Full Control" > Apply > OKUser-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.
From a workstation, verify file access:
1. Open File Explorer2. Type in address bar: \ServerNameShareName3. You should see the company file folder4. Right-click the .QBW file > Properties5. 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.
Ensure no users have QuickBooks open. On the server, check Task Manager (Ctrl+Shift+Esc) to verify no QBW32.exe processes are running.
Enable file extensions in File Explorer:
1. Open File Explorer2. Click View tab3. Check "File name extensions"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.
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
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.
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
Launch Tool Hub and:
1. Open QuickBooks Tool Hub2. Select "Network Issues" tab3. Click "QuickBooks Connection Diagnostic Tool"4. Wait 20-45 minutes for full scan (do not interrupt)5. Review results when complete6. Restart computer if promptedFor 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.Verify Database Server Manager is running on the server
- 2.Delete .ND and .TLG files and rescan with Database Server Manager
- 3.Check firewall settings on server and workstation
- 4.Verify hosting is only enabled on the server machine
- 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.Ping the server from workstation: ping [ServerName]
- 2.Verify network cable connections are secure
- 3.Check Windows Firewall settings on both machines
- 4.Ensure company file folder is shared with proper permissions
- 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.Check network stability (ping server continuously)
- 2.Verify server is not going to sleep or hibernation
- 3.Check for network switch or router issues
- 4.Disable power management on network adapters
- 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.
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.
Recommended for:
All multi-user environments, especially 4+ users
If you're currently using a mapped drive:
1. Close QuickBooks on all machines2. On workstation, open File Explorer3. Right-click mapped drive > Disconnect4. Click address bar and type: \ServerNameShareName5. Navigate to company file location6. Open QuickBooks and browse to file using this UNC path7. Add company file to "Open Previous Company" listFinding Your UNC Path
To find the UNC path of a mapped drive:
net useThis 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.
On each computer:
1. Open QuickBooks Desktop2. Press F2 (or Ctrl+1)3. Look at top line: "QuickBooks Desktop [Edition] 2024 Release R12"4. Record the edition, year, and release number5. Compare with other machinesIf 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.
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"
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)
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
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