Learn How to Host QuickBooks Company File for Multi-User Setup 

Need to host your company file on the multi-user network and wondering how to host QuickBooks company file?

The hosting mode allows your primary computer to store the company file on the network and connect with multiple computers to share access with different users. This feature is especially useful for businesses where multiple team members need to work on the same company file at the same time without creating duplicate files or data conflicts.

By enabling hosting in QuickBooks, your system acts as the server while other computers on the network access the file through it. In this guide, we’ll walk you through the step-by-step process to host a QuickBooks company file, enable multi-user mode, and ensure all users can access the file securely and efficiently.

What is Hosting?

The term hosting means storing a company file or a website on a server (the host) computer that allows other computers to access it over the internet. 

QuickBooks uses a service to manage the company file access:

• QuickBooks 2024 uses QuickBooksDB34
• QuickBooks 2023 uses QuickBooksDB33
• QuickBooks 2022 uses QuickBooksDB32

On your computer, you will find this service under Users in the Windows Control Panel, in User Accounts. Find the services that correspond to your version of QuickBooks Desktop. 

What are the Different Types of Hosting? 

Web hosting comes in different forms, and each type offers unique features, levels of control, and performance depending on the size and requirements of a website. Let’s explore these different types of hosting: 

a. Dedicated hosting

b. Peer to peer hosting

c. Alternate hosting

How to Access Company Files on the Hosting?    

To host your company file, QuickBooks Desktop requires you to meet the three primary conditions to allow access to company files:

• Windows file permissions: The user hosting the company file must have Full Control permissions, which include the ability to view, open, and edit the data file.
• Database server mode: The database server scans your company file and ensures you can successfully open the company file. 
• QuickBooks user login: Each connected user must have their own QuickBooks user login and password.

Once these requirements are met, you can easily access your company file on the multi-user network. 

Different Types of Hosting modes

The hosting configuration in QuickBooks Desktop is applied separately to each software version and to each computer. It is not configured for a specific company file or for the overall QuickBooks Desktop installation. When multiple versions of QuickBooks Desktop 2018 or later are running simultaneously, each version’s hosting settings operate independently.

QuickBooks Desktop offers three hosting options: Not Hosting (also called Hosting Off), Hosting Local Files Only, and Hosting Local & Remote Files.

Not Hosting mode

• QuickBooks Database Server Manager runs as a background service on the computer that hosts the company file. It manages access to the QuickBooks company files for multiple users over the network.
• Not Hosting or Single-User Mode does not support Multi-User Mode. In this mode, only the QuickBooks Desktop user who is running QuickBooks Desktop on the local computer can access the company file. Other users on the network cannot access the file through the database server.

Hosting Local Files Only mode

• QuickBooks Database Server Manager operates as a Windows service called QuickBooksDBXX, where XX (25–28) corresponds to the installed QuickBooks Desktop version. It also runs under a Windows account named QBDataServiceUserXX, using the same two-digit version number.
• The QuickBooksDBXX service stays active whenever the computer is powered on.
• The system supports multi-user access, communicating through TCP/IP so that QuickBooks Desktop users on other computers can open company files stored on a server configured in Hosting Local Files Only mode.
• When a computer is set to Hosting Local Files Only, it can host and share only the company files that are stored directly on that specific machine.

Hosting Local & Remote Files mode

• QuickBooks Database Server Manager runs just like other processes if you are currently logged on as a Windows user. This process starts when a user logs in to Windows and stops when the user logs out. 
• A server computer that is hosting Hosting Local & Remote files mode can support multi-user mode, using TCP/IP to communicate with QuickBooks Desktop. Users running QuickBooks Desktop on remote machines can open company files stored on this computer through a database server.
• When operating in this mode, the local computer can host its own files and also handle files from other computers that are opened on it.

How QuickBooks Desktop Determines Which Database Server to Communicate With?

• QuickBooks Desktop first searches for the .ND file, which is a small text file that has the same name as the company file but uses the .ND extension. This file is stored in the same folder as the company file, which has the .QBW extension. The folder also includes connection details such as the server’s IP address and port number.
• QuickBooks Desktop then checks whether the .QBW company file is currently being used.
• If the .ND file is found and the company file is already in use, QuickBooks Desktop attempts to connect with the server:
  • If the connection works, the company file opens normally.
  • If the connection fails, an error message appears with instructions to fix the problem, such as Error H101, H202, H303, or H505 when trying to open the company file.

Conclusion 

We hope this comprehensive article has answered your query about how to host QuickBooks company file. After understanding the different hosting types and how they work, it should now be easier and more convenient for you to choose the best way to connect your company file over a network.

However, if you still find the process challenging or require professional assistance, consider connecting with QuickBooks ProAdvisors. Speak with a certified expert today for reliable guidance and support.

Frequently Asked Questions 

How do I add a company file to QuickBooks Desktop?

To add a company file to QuickBooks Desktop, go to File > Open or Restore Company, select Open a company file, then browse to choose your .QBW QuickBooks company file. If you want to start a new company File > New Company from Existing File. 

Where does QuickBooks Desktop store company files?

QuickBooks Desktop typically saves the company file (.QBW) at the default location which is: C:\Users\Public\Public Documents\Intuit\QuickBooks\Company Files. You can save the file later on local drives, external drives, or networked servers to facilitate multi-user access. 

How do I host QuickBooks company files on a Windows Server?

To host QuickBooks company files on a Windows Server, install the QuickBooks Database Server Manager on the server to enable multi-user access. Move company files to a shared folder on the server, configure Windows file permissions, scan the folder with the Database Server Manager, and ensure firewall ports are open. 

How do I manage company file access in QuickBooks Desktop?

Manage company file access in QuickBooks Desktop by configuring user roles under Company > Users > Set Up Users and Roles, enabling multi-user mode, and setting Windows folder permissions to allow shared access. The default location is C:\Users\Public\Public Documents\Intuit\QuickBooks\Company Files. 

What does hosting mean in QuickBooks?

QuickBooks hosting refers to installing the desktop version of QuickBooks software on a remote, secure cloud server rather than a local computer or office network. This enables multiple users to access the same company files, applications, and data via the internet from any location and device. 

Where can I find QuickBooks Desktop hosting mode?

QuickBooks Desktop hosting mode is found under the File > Utilities menu, where you select Host Multi-User Access on the server computer. This enables other users to access company files on the network.