QuickBooks is an essential accounting software used by small to mid-sized businesses for managing their finances. One common issue that users face is QuickBooks Error H202. This error typically occurs when users try to switch to multi-user mode and the workstation cannot access the company file stored on another computer (server). This blog will delve into the details of Error H202, its causes, symptoms, and provide a comprehensive guide on how to fix it.

Understanding QuickBooks Error H202

QuickBooks Error H202 is a part of the H-series errors (H101, H202, H303, H505), which are related to multi-user mode issues. Specifically, Error H202 indicates a problem with the network configuration that prevents the workstation from accessing the company file located on the server.

Symptoms of QuickBooks Error H202

Before diving into the solutions, it’s important to recognize the symptoms of Error H202:

  • Error Message: A message appears stating "Error H202: This company file is on another computer, and QuickBooks needs some help connecting."
  • Multi-User Mode Inaccessibility: Unable to switch to multi-user mode.
  • Network Issues: Issues with accessing the company file over the network.
  • Performance Issues: The system may slow down or freeze when working in QuickBooks.

Causes of QuickBooks Error H202

Understanding the causes of Error H202 can help in effectively troubleshooting it:

  1. Incorrect Hosting Configuration: The hosting configuration may not be set up correctly.
  2. Firewall Settings: The firewall may be blocking communication between QuickBooks and the server.
  3. DNS Settings: Incorrect DNS settings can prevent QuickBooks from connecting to the server.
  4. QuickBooks Services Not Running: QuickBooks Database Server Manager and other essential services might not be running.
  5. Network Data (.ND) File Issues: Damaged or incorrect .ND files can cause connection issues.

How to Fix QuickBooks Error H202

Step 1: Verify Hosting Settings

Ensure that only the server (host computer) is set to host multi-user access and that no other computer is configured to host.

  1. Open QuickBooks on all user computers.
  2. Go to File > Utilities.
  3. If you see Stop Hosting Multi-User Access, click on it. If you see Host Multi-User Access, do not click it.

Step 2: Use QuickBooks File Doctor

QuickBooks File Doctor is a tool designed to fix common errors, including network issues.

  1. Download and Install QuickBooks Tool Hub: From the official Intuit website.
  2. Open QuickBooks Tool Hub: Once installed, open the Tool Hub.
  3. Select Company File Issues: Click on Company File Issues.
  4. Run QuickBooks File Doctor: Choose Run QuickBooks File Doctor and follow the on-screen instructions to scan and fix issues.

Step 3: Configure Firewall Settings

Your firewall may be blocking communication needed for QuickBooks to work in multi-user mode.

  1. Open Control Panel and go to System and Security > Windows Defender Firewall.
  2. Select Advanced Settings.
  3. Right-click Inbound Rules and select New Rule.
  4. Select Port and click Next.
  5. Choose TCP and enter the specific ports required for QuickBooks:
    • QuickBooks Desktop 2019: 8019, 56728, 55378-55382
  6. Click Next, then Allow the Connection, and click Next again.
  7. Ensure all profiles are checked, then name the rule and click Finish.

Repeat the steps for Outbound Rules.

Step 4: Verify .ND Files

Network Data files (.ND) allow QuickBooks to access a company file in a network or multi-user environment. Ensure these files are correct and not damaged.

  1. Open the folder that contains your company file.
  2. Find the files with the same name as your company files but with .ND extensions (e.g., company_file.qbw.nd).
  3. Right-click each .ND file and select Delete.
  4. Open QuickBooks Database Server Manager from the Start menu.
  5. Scan the folder that contains your company files. This will create fresh .ND files.

Step 5: Check and Configure Hosting Mode on Server

Ensure that the server is correctly configured to host multi-user access.

  1. Open QuickBooks on the server.
  2. Go to File > Utilities.
  3. Select Host Multi-User Access if it is not already enabled.

Step 6: Verify QuickBooks Services

Ensure that essential QuickBooks services are running.

  1. Open the Run window (Windows + R) and type services.msc.
  2. Find and restart the following services:
    • QuickBooksDBXX (where XX is the version number)
    • QBCFMonitorService
  3. Right-click each service and select Restart.

Step 7: Check DNS Settings

Incorrect DNS settings can prevent QuickBooks from connecting to the server.

  1. Open the Command Prompt as an administrator.
  2. Type ipconfig /flushdns and press Enter.
  3. Restart your computer and try to switch to multi-user mode again.

Step 8: Edit Windows Hosts File

Manually configuring the Windows hosts file can resolve network-related issues.

  1. Open Notepad as an administrator.
  2. Go to File > Open and navigate to C:\Windows\System32\drivers\etc.
  3. Select All Files from the drop-down menu and open the hosts file.
  4. Add the IP address and computer name of the server hosting the company file.
  5. Save the changes and close Notepad.

Step 9: Create a New Folder for the Company File

Sometimes, moving the company file to a new folder can resolve the issue.

  1. Create a new folder on the server.
  2. Move the company file (.qbw) to the new folder.
  3. Set up folder permissions to ensure all users can access the folder.

Preventing Future Occurrences

To minimize the chances of encountering Error H202 in the future:

  1. Regularly Update Software: Keep QuickBooks and your operating system updated.
  2. Maintain Network Health: Regularly check and maintain your network settings.
  3. Backup Regularly: Keep regular backups of your QuickBooks data to prevent data loss during issues.
  4. Use Reliable Hosting Services: If applicable, use a reliable third-party hosting service for QuickBooks.


QuickBooks Error H202 can disrupt your workflow, especially when you need to access your company file in multi-user mode. By following the detailed steps outlined in this guide, you can effectively troubleshoot and resolve this error, ensuring smooth and uninterrupted access to your QuickBooks data.

If the issue persists despite following these steps, consider contacting QuickBooks support for further assistance. Professional help can provide more in-depth solutions tailored to your specific setup, ensuring that your QuickBooks environment runs efficiently and without errors.