When you upgrade to a latest version of QuickBooks Desktop and try to open a QuickBooks company file, you may encounter a warning message that says: “This Company file needs to be updated. Please ask your QuickBooks Admin to update the file"Until the problem is fixed, you might have trouble loading your company file. This article talks about how to fix the This company file needs to be updated error in QuickBooks. It also explains the causes and methods to fix this error. 

Methods To Fix The Error “The Company File Needs To Be Updated”

When QuickBooks displays the message "This company file needs to be updated," users need to upgrade their company file. You must follow the following procedure step by step: 

Step 1: Get Your Company File Ready for an Upgrade 

You must make sure that the company file is secure and that it is prepared for the updating procedure. The steps you must take are as follows: 

• Run your company file after launching the default QuickBooks application. 
• The Product Information box will appear after pressing F2. 
• The location of your company file should be noted in the File Information section. 
• For your company file, launch the Rebuild Tool. For the upgrade, it will get the file ready. 
• If you put your file on a server, please transfer it to a local hard drive. After the file has been upgraded, you can move it back.

Step 2: Update the Company File 

Your company file needs to be updated in QuickBooks desktop in order to prevent a repetition of the error message. You must adhere to the following steps:

• From your company file, log off every user. 
• Start the most recent QuickBooks Desktop application. 
• If no company file has been opened, click Open or Restore Company. Choose Open or Restore Company from the File menu.