QuickBooks Cannot Communicate with The Company File issue: 10 Methods to Address It

When QuickBooks encounters difficulty connecting to your company file, it pops up an error message that says, “Unable to communicate with the company file.” 

It indicates that, despite QuickBooks being designed for shared access to the company file, an issue is currently preventing this connection. Many users have reported this problem, especially after updating their operating systems or software.

To resolve this issue, it’s essential to ensure that the QBDataServiceUser, specific to your QuickBooks version, has complete control access to the folder where your QB company file is located. 

Errors or warnings from the software often occur when this setup isn’t documented correctly. And don’t forget to maintain a backup of your company file; it can be a lifesaver if your data is lost.

What Is the QuickBooks Cannot Communicate with The Company File Issue?

When QuickBooks tries to read the company file but faces connectivity problems, primarily related to firewalls, you’ll see a pop-up window with the error message, “Cannot communicate with the company file.” 

This error message explains, “It appears that the QuickBooks software on this computer is configured for shared access to the company file, but your computer’s QuickBooks software can’t establish communication with it.”

The error message not only describes the problem but also provides a solution. It suggests that the communication problem may be due to a firewall issue. You might need to reconfigure the firewall software if you have a firewall installed on your network. 

It also recommends downloading and using QuickBooks File Doctor, formerly QuickBooks Connection Diagnostic Tool. 

To help you tackle this issue, we’ve put together this post. We’ll delve into the factors causing the problem and share detailed troubleshooting steps to fix the problem.

Reasons Why QuickBooks Cannot Communicate with The Company Files?

Multiple factors can contribute to the “QuickBooks cannot communicate with the company file” error. 

Here are some of the potential causes:

Server Hosting Issues:

This can happen due to network issues, server outages, or misconfigurations. QuickBooks relies on continuous access to the company file; any server downtime can disrupt this connection.

Improper Server Configuration:

If the server’s configuration is incompatible with QuickBooks requirements, such as network protocols or file path settings, it can result in connection issues.

Database Server Manager:

QuickBooks relies on the Database Server Manager to manage multi-user access to the company file. If the Database Server Manager is not functioning correctly or running, QuickBooks may be unable to connect with the company file.

Outdated QuickBooks Version:

Running an outdated version of QuickBooks can prompt company file connection problems and other errors like payroll issues, banking errors, printing glitches, and update failures.

Folder Permission Errors:

Folder permission errors can occur when the folder containing your company file has restrictions that hinder QuickBooks from reading, writing, or making changes to the files inside. These errors can lead to issues like QuickBooks being unable to open or save the company file, resulting in connectivity problems and other errors.

Hosting Settings Mismatch:

It is when the settings for hosting the company file across multiple computers in a network are not in sync or configured correctly. This mismatch can happen when there are inconsistencies in how each computer is set up to host or access the company file in a multi-user environment.

Missing QBDBMgrN Service:

The QBDBMgrN service missing error typically happens during attempts to install a QuickBooks update or upgrade to a newer version but the Windows firewall hasn’t been updated. In this scenario, the firewall identifies the QBDBMgrN service as an unknown entity and prevents internet access.

Tip: To avoid the error, always keep your QuickBooks and Windows updated, ensure accurate hosting settings, verify folder permissions, and maintain a stable network connection. 

Don’t forget to back up your data, and if persistent issues crop up, consider seeking professional assistance.

HFE.com: Quick Fixes

Problem: Server Hosting Issues:

Solution: To adjust hosting settings in QuickBooks, check the hosting setup and ensure that the server is configured as “Stop Hosting Multi-user Access.” Verify that workstations don’t display “Stop Multi-user Access.”

Problem: Database Server Manager:

Solution: Go to the “Network Issues” in the QuickBooks Tool Hub and run the QuickBooks Database Server Manager. Ensure it scans and adjusts firewall permissions. Check if the .ND file is present in the scanned folder. 

Problem: Outdated QuickBooks Version:

Solution: To update QuickBooks, close all company files, run QuickBooks as an administrator, and run the Update QuickBooks option. Restart your computer once the update is finished.

Problem: Missing QBDBMgrN Service:

Solution: Open the Task Manager and check if QBDBMrgn.exe is present. If it’s not found, grant QBDataServiceUser administrative rights via the Control Panel. These steps help adjust network settings and verify the QBDBMrgn.exe process’s functionality to address the issue.

How To Fix QuickBooks Communication Error with The Company File?

This section will explore different methods to address QuickBooks communication errors with your company file. 

We understand the frustration these issues can cause, but fear not – we’ve got practical solutions to help you get QuickBooks back on track. Let’s dive into the steps to resolve these problems effectively.

Method 1: Use the QuickBooks File Doctor tool

QuickBooks File Doctor helps address common network connectivity issues between workstations and servers and mends damage within the company file. 

Below are the steps to download and run QuickBooks File Doctor:

  • Begin by downloading the QuickBooks Tool Hub.
  • Go to your system’s downloads folder by pressing CTRL+J within your browser and opening the downloads folder.
  • Right-click the QuickBooks Tool Hub.exe file, then select “Open.”
  • Consent to the Terms and Conditions, then follow the prompts to complete the installation.
  • Once the installation is complete, launch the QuickBooks Tool Hub using the desktop icon.
  • If you can’t find QuickBooks Tool Hub on your desktop, search it in the Start menu.
  • Go to the “Company File Issues” tab and select “QuickFixMyProgram.”
  • After the repair process finishes, click “OK” and try to open the company file in QuickBooks Desktop again.
  • If the issue persists, return to the “Company File Issues” tab and select “Run QuickBooks File Doctor.”
  • Choose the option to repair corrupted company files and network issues and allow the tool to automatically resolve any identified problems.

If QuickBooks cannot connect to the company file, proceed to the next solution.

Method 2: Configure the Firewall Settings

To configure firewall ports manually, follow these steps:

  • Go to the Start menu.
  • Type “Windows Firewall” in the search field and select it from the results.
  • This will open the Windows Firewall screen.
  • Next, click on the “Advanced Settings” button.
  • Right-click on “Inbound Rules” and choose “New Rule.”
  • Locate the option for ports and click “Next.”
  • Ensure that “TCP” is selected and proceed by clicking “Next.”
  • Enter the ports required for your QuickBooks Year Version in the field for local ports.
  • After entering the port number, click “Next.”
  • Make sure to enable the connection and then click “Next.”
  • Verify that all the profiles are selected if prompted.
  • Once done, click “Next.”
  • Create a rule and assign a name to it.
  • Finally, click “Finish.”

These steps will help you manually configure firewall settings to allow QuickBooks to communicate effectively.

Method 3: Adjust Network Settings in Windows 

You can enable Windows to share the QuickBooks Company file over a network by following these steps:

  • Open the Windows Start menu.
  • In the search area, type “Sharing” and select “Manage Advanced Sharing Settings.”
  • Choose the option to “Turn off password-protected sharing.”
  • Now, open QuickBooks Software and attempt to open the Company File once more.

If the error message keeps appearing, try the next solution.

Method 4: Add Exceptions to Windows Firewall Ports

Here’s how to add exceptions to specific Windows firewall ports:

  • Begin by searching for and opening the Windows firewall using the search option.
  • In the “Advanced Settings” section, right-click “Inbound Rules.”
  • Select “Port” and click “Next.”
  • Choose “TCP” from the options for “Does this rule apply to TCP or UDP?”
  • Add the port numbers specific to your QuickBooks Desktop Version.
  • For QuickBooks 2018, add ports 8019, 55378-55382, and 56728.
  • For QuickBooks 2019, add port 8019.
  • For QuickBooks 2020, run the QuickBooks Database Server Manager and assign a specific port.
  • Click “Next” after entering the port details and select “Allow the Connection.”
  • Click “Next” and ensure that all the profiles are checked.
  • Click “Next” once more and provide a name for the new rule.
  • Once the new rule is created, click “Finish.”

Method 5: Update QuickBooks Manually

Using an outdated QuickBooks version can cause communication errors with company files and many other problems. So, it’s best to keep it updated to the latest release.

Here are the steps to manually update QuickBooks:

  • If multiple company files are open, stop Company/Logoff from the File menu for each.
  • For multiple company files in QuickBooks Desktop, repeat this step. Choose File and then select Exit.
  • Return to your home screen or desktop, find the QuickBooks Desktop icon, right-click on it, and choose “Run as administrator.”
  • Ensure that you are on the “No Company Open” screen.
  • From the Help menu, select “Update QuickBooks.”
  • Click on “Options.”
  • Choose “Mark All,” then select “Save.”
  • Select “Update Now.”
  • Click “Reset Update,” then hit the “Get Updates” button.
  • When you see the update completion message, exit QuickBooks Desktop.
  • Reopen QuickBooks Desktop.
  • If prompted to install the update, select “Yes.”

After the installation is complete, restart your computer.

Method 6: Run QuickBooks Database Server Manager on Your Server

If your server stores your QuickBooks company file and other network-connected computers act as workstations, follow these steps:

  • Navigate to “Network Issues” within the QuickBooks Tool Hub.
  • Look for the QuickBooks Database Server Manager. You’ll be prompted to install it if it’s not installed on your server.
  • Open the QuickBooks Database Server Manager and choose “Start Scan” if you can locate your company File folder. If you can’t see your company file, browse to its location and then select “Start Scan.”
  • The QuickBooks Database Server Manager will automatically adjust your firewall permissions.
  • When the scan completes, select “Close.”

After completing these steps, try to locate and open the folder you’ve scanned. Ensure there’s an ND file in the folder, which should look like this: [your company file].qbw.nd. 

If you don’t see the ND file, rescan the folder. If it’s still not there, proceed to the next solution.

Method 7: Verify Hosting Settings on Workstations and Server

Here’s how to check hosting settings in QuickBooks:

  • Open QuickBooks Accounting Software on your system and go to the File tab.
  • Place the cursor over the Utility option and check the Hosting Setup.
  • If you see the “Stop Hosting Multi-user Access” option, it indicates the server is correctly configured. You can proceed to address issues on other workstations.
  • If the settings display “Host Multi-user access,” select that option and change it to “Stop Hosting Multi-user Access.”
  • Go to each workstation and ensure none display “Stop Multi-user Access.”
  • After making these adjustments to the hosting setup, attempt to reaccess the company file from the workstation where you encountered the “QuickBooks cannot communicate with the company file” issue.

Method 8: Rename the .TLG and .ND Files

The .ND and .TLG files serve as configuration files that QuickBooks relies on to access company files. If these files become damaged or corrupted, it can trigger the error.

To address this problem, consider renaming the .ND and .TLG files using the following steps:

  • Open the folder containing your company file.
  • Find the files with the same name as your company file but with the extensions .ND and .TLG.
  • Ensure that your computer is connected to the same network as your company file. If there are network issues, try resetting your router or modem.
  • Close QuickBooks and restart your computer to see if this settles the problem. Sometimes, just a restart can fix connectivity problems.
  • Confirm that your firewall and antivirus settings are not obstructing QuickBooks from accessing the company file. Consult your IT department or refer to your antivirus software documentation for guidance.
  • QuickBooks offers a free tool, the QuickBooks File Doctor, designed to diagnose and repair company file errors. Download and run it to see if it can resolve the problem.
  • Open the company file, go to “Utilities,” and select “Verify Data” to check for data damage. If damage is detected, choose “Utilities” > “Rebuild Data” to rectify the issues.

If all else fails, attempt to restore a recent company file backup to determine if the issue persists.

Method 9: Check if the QBDBMgrn.exe Process Is Working

To ensure the QBDBMrgn.exe process is functioning correctly, follow these steps:

  • Press Ctrl + Alt + Del simultaneously to open the Task Manager.
  • Look for QBDBMrgn in the list of processes.
  • If you can’t find it, grant QBDataServiceUser administrative rights by following these steps:
  • Close QuickBooks and open the Control Panel.
  • Select “User Accounts.”
  • Double-click on “QBDataServiceUser.”
  • Choose “Change Account Type” and select “Administrator.”
  • Save the changes and close the Control Panel.

These steps should help you adjust network settings and confirm the functionality of the QBDBMrgn.exe process to resolve the issue.

Method 10: Prepare QuickBooks Network Data File

To prepare the QuickBooks Network Data File, follow these steps:

  • Go to the Start menu and enter “QuickBooks Database Server Manager.”
  • Select the specific QuickBooks Database Server Manager.
  • On the QuickBooks Database Server Manager page, click “Add Folder.”
  • Locate the Company File folder.
  • Click on the folder with the company file and select “Scan.”
  • The scan will list all the company files in the “QuickBooks Company Files Found” list.
  • Now, search for the Network Data File within the same folder.


When facing QuickBooks communication errors with the company file, it’s crucial to diagnose the specific issue accurately. Always maintain regular backups of your company files and keep your QuickBooks up to date. 

Take proactive steps to resolve QuickBooks issues and seek expert guidance from QuickBooks support if needed.

Hopefully, the above-given information is useful for you to get rid of this problem. But if you are still facing any issues with your software and need professional assistance, regarding accounting, bookkeeping & accounting software-related issues then feel free to get in touch with Certified Experts at +1-860-325-4922. The USA-based ProAdvisors will provide all sorts of assistance related to the software 24/7.