How to Resolve QuickBooks Multi-User Mode Not Working Error


Last Update: October 17th, 2025     Author: Adams Williams

Reviewed By: SMBAccountants Editorial Team

QuickBooks is an effective accounting application that can accommodate numerous users to the same company file and a common network. This feature is referred to as Multi-User Mode, which improves teamwork, saves time, and enables accounting activities to be effectively handled by various team members. Users are, however, prone to the QuickBooks Multi-User Mode Not Working Error, which does not allow users to switch between single-user mode and multi-user mode. When that occurs, it will allow the company files to be accessed by only one individual at any given time, and this will result in a disruption to the workflow, making it very inconvenient.

This failure normally occurs when the network configuration presents some troubles, misplaced folder permissions, or issues with QuickBooks Database Server Manager. Luckily, it has a number of viable solutions to fix it. This article will discuss the reasons behind this error and why you should pre-verify certain conditions before you start troubleshooting, in addition to the step-by-step process of correcting the error.

Why Users Face QuickBooks Multi-User Mode Not Working Error

The knowledge of the underlying factors that lead to the QuickBooks Multi-User Mode Not Working Error assists in the application of a correct remedy. The following are the most widespread causes when users face this problem:

CausesDescriptions
Wrong Hosting Set-UpThe computers in which the company file is hosted may not be configured to allow multi-user access.
QuickBooks Database Server Manager ProblemsDatabase Server Manager (QBDBSM) might not be correctly installed or started on the server.
Firewall/Security Software BlocksQuickBooks may not be allowed to communicate with the network due to Windows firewall (or a third-party antivirus.
Wrong Folder PermissionsIt is possible that the folder holding the company file does not give complete access permissions to anyone.
Damaged or Lost.ND and.TLG FilesThese files are also a key to network connectivity; therefore, in case they are broken, QuickBooks will not open to multi-user mode.
Network Connectivity IssuesThe error can also be brought about by poor or lost connection between the workstations and the server.
QuickBooks or Windows VersionThe software or operating system should be updated because compatibility problems may occur with the old version.

It is important to have some pre-conditions prior to undergoing the troubleshooting steps.

Pre-conditions before Fixing QuickBooks Multi-User Mode Not Working

Before applying any fix, the following checks should be conducted to ensure the process of troubleshooting is smooth:

  • Updating QuickBooks and Windows: Be sure that QuickBooks Desktop is updated and your Windows OS is updated to the most recent version.
  • Admin Access: Use the username and password of an administrator on both the workstation and the server computer.
  • Check Network Connection: Ensure that all the computers are connected successfully to the same local network.
  • Back up the Company File: It is always advisable to make a backup of your company file within QuickBooks to prevent the loss of data.
  • Turn Off Hosting on Workstations: Multi-user hosting must be used only in the server, and not in the individual workstations.
  • Install the right QuickBooks Version: It is important to ensure that all the systems are running the same version and edition of QuickBooks Desktop.

When these pre-conditions have been confirmed, then you can proceed to the solutions.

How to Resolve QuickBooks Multi-User Mode Not Working Error

The steps that follow will take you through an extensive troubleshooting process of restoring the multi-user functionality in QuickBooks.

Solution 1: Use QuickBooks Database Server Manager

QuickBooks Database Server Manager (QBDSM) allows more than one user to use the company file at the same time. In case it is not working well, then you may experience the multi-user error.

  • Open the windows start menu on the computer being used as the server.
  • In the Search bar, you need to Type database server manager and open it.
  • Click on Start Scan in case your company file folder appears.
  • Otherwise, click Browse, pick your company file folder and then click Start Scan.
  • After the scan is done, QBDSM will automatically mend firewall permissions to permit multi-user.
  • Reboot the server and ensure that you can change to multi user mode.
QuickBooks Database Server Manager

Solution 2: Create a New Company File Folder

In a few cases, folder corruption prohibits the use of the multi-user mode of QuickBooks to access the company file.

  • Go to your server computer and make a new folder (such as QBData_New).
  • Transfer your company file (.QBW) to such a folder.
  • For the new folder, right-click on it and choose Properties → Sharing tab.
  • Click Share and add everyone as a user and make sure that Full Control permissions are enabled.
  • Start QuickBooks in multi-user and verify whether the issue is still there.
Create-a-New-Company-File

Solution 3: Check Your Network for Any Connectivity Issues

QuickBooks Multi-User Mode Not Working Error can be caused by network instability or a lack of connection between the server and the workstations.

  • Open Command Prompt of each workstation.
  • Ping [ServerName] and enter.
  • Observe the response:

In case you are getting a packet loss or Request Timed Out, it is possible that your network is not very stable.

  • Make your workstation connected to the Net or call your IT administrator to resolve the problem.
Network for Any Connectivity Issues

Solution 4: Download and Run QuickBooks File Doctor

An official tool by Intuit, the QuickBooks File Doctor, is the tool that will automatically diagnose and repair issues related to company files and networks.

  • Install the QuickBooks Tool Hub on the official site of Intuit.
  • Click on the Tool Hub and choose Company File Issues.
  • Click QuickBooks File Doctor.
  • Click on your company file and then you need to Select Check your file and network.
  • Insert your QuickBooks administrative credentials and Continue.
  • After repair has been made, restart QuickBooks and again test multi-user mode.
Run QuickBooks File Doctor Tool

Solution 5: Configure the Multi-User Permissions

Multi-user access failures are common in case of incorrect folder or user permissions.

  • In your server computer, find the folder that has the company file.
  • Click on the security tab, Properties.
  • Within Group or User Names, make sure that Everybody, QBDataserviceUserXX, and Administrators have Full Control.
  • Click on apply and you are done.

Solution 6: Configure Multi-User Access Hosting Settings

To operate in multi-user mode, QuickBooks should be properly made to work in a hosted environment.

  • Install QuickBooks Desktop on the server computer.
  • Go to File – Utilities.
  • In case you see Host Multi-User Access, you can click on that to host.
  • In case you see Stop Hosting Multi-User Access, then the hosting has been turned on.
  • In each of the workstations, go to File – utilities – and make sure that Host Multi-user Access is not checked.
Verify-Hosting-Options

This makes sure that the server is the only place where the company file is hosted while the workstations are clients who access it.

Solution 7: Verify the Server’s Services

The server must have two vital QuickBooks services, QuickBooksDBXX and QBCFMonitorService.

  • Click on Windows + R and type services.msc and then press Enter.
  • Find QuickBooksDBXX (with XX the version year of QuickBooks).
  • One can right-click and choose Start (unless it is already running).
  • Select Startup Type to be Automatic.
  • Do the Same with QBCFMonitorService.
  • Reboot workstation computers and server.

Solution 8: Verify the Folder Permission on the Server Computer

The company file cannot be accessed by the network when improper permissions are made.

  • Right-click on the folder in which you have stored your company file.
  • Go for Security tab under Select Properties.
  • Make sure that the next permissions are granted to everyone:
    • Read
    • Write
    • Execute
    • Modify
    • List Folder Contents
  • Implement changes and recheck QuickBooks.

Solution 9: Add Your Server to the Windows Host File

The Windows Host File is used to associate IP addresses with hostnames. In case the server is not on the list, the workstations may not be able to find it.

  • Open Notepad as an administrator on the workstation.
  • Click on C:\Windows\System32\Drivers\Etc and open up the host file.
  • Finally, the IP address of the server along with the name should be added in the end of the file, e.g:
    • 192.168.1.100 QBServer
  • Close the file and re-open QuickBooks.

Solution 10: Ping the Server from a Workstation

To have your workstation communicate with the server:

  • Need to open Local Command Prompt at the workstation.
  • Ping [ServerName] and hit the enter key.
  • When you get the responses without the loss of packets, then everything is fine with your connection.
  • If the latter is the case, then you should be working on your network adapter or getting assistance from your IT support.
Ping the Server from a Workstation

Solution 11: Open the Sample Company File in Multi-User Mode

A sample file would assist in determining whether the problem is in the original company file or network settings.

  • Open QuickBooks Desktop in your workplace.
  • In the No Company Open window, clicking on Open a sample file is possible.
  • Select any sample company and go to Multi-User Mode.
  • In case this succeeds, your primary company file could be damaged, and a repair would be needed.
Sample Company File in Multi-User Mode

Solution 12: Run the QuickBooks Condense Data Utility

When your company file is extensive or damaged information is present, it may help to run the Condense Data Utility.

  • Open QuickBooks Desktop.
  • File – Utilities – Condense Data.
  • Use on screen instructions to delete audit trail or unused information.
  • After the process is done, Retest multi-user mode.
condense-data

Solution 13: Rename the .TLG and the .ND Files

Such files contain data that enables QuickBooks to access the company file via a network. The errors associated with multiple users can be prompted by corruption in these files.

  • Open the folder in which you have your company file.
    • Find files of the same name as the file of your company with extensions .ND and .TLG.
    • Example:
      • CompanyFile.qbw.nd
      • CompanyFile.qbw.tlg
  • Just click on each of the files once, right-click and select Rename.
  • Change their names to have an .OLD suffix (for example, CompanyFile.qbw.nd.OLD).
  • Open QuickBooks again; the software will reconstruct such files automatically.
Rename-QuickBooks-.ND-and-.TLG-Files

Solution 14: Configure the Windows Firewall Settings

The multi-user ports needed by QuickBooks may be blocked by the Windows Firewall.

  • Open up the control panel and visit windows defender firewall.
  • Click on Advanced Settings – Inbound Rules -New Rule.
  • Choose Port – click next.
  • Select TCP and type the following port numbers to your QuickBooks version:
    • QuickBooks 2025: 8019, 56740-56744
    • QuickBooks 2024: 8019, 56735-56739
    • QuickBooks 2023: 8019, 56730-56734
  • Click – Next – Check all the profiles – Finish.
  • Same steps in the case of Outbound Rules.
  • Boot up again and see if multi user mode works.
Firewall Settings Configuration

Conclusion

The QuickBooks Multi-User Mode Not Working error often occurs due to network issues, incorrect settings, or damaged files. You can fix it by running the QuickBooks Database Server Manager, adjusting firewall and folder permissions, and ensuring stable network connectivity.

To prevent future issues, keep your QuickBooks, Windows system, and network hardware updated. Proper server configuration and permissions are key to maintaining smooth multi-user access and uninterrupted team collaboration.

Frequently Asked Questions

Q 1: What is the use of the.ND file in Multi-User Mode?

Q 2: What do I do in order to ensure that every computer is connected to the same network?

Q 3: What happens in case the problem remains even after using all these solutions?

Q 4: What measures can I take to prevent Multi-User Mode issues from happening again?

Q 5: Will Windows updates cause this issue?

Adams Williams

Adams Williams is a seasoned accounting professional with over 4 years of experience in bookkeeping, financial reporting, and business accounting solutions. Specializing in QuickBooks software, Adams combines technical expertise with clear, accessible content writing to help businesses streamline their financial processes. His insightful guides and how-to articles are crafted to assist both beginners and seasoned users in navigating accounting software with confidence.

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