QuickBooks Server-Client Setup – Multi-User Mode Installation & Troubleshooting

In QuickBooks Server Client setup is what connects different components of the application, allowing seamless communication between systems. This setup ensures that multiple users can access the same company file over a multi-user network without data conflicts or interruptions.

If you plan to use QuickBooks in a shared environment, it’s essential to properly set up a server, the central system that hosts your company files, and configure the workstations that connect to it.

At AccountsPro, we’ve outlined everything you need to know about the QuickBooks server-client setup and workstation configuration, including detailed steps for setting up QuickBooks on a network and ensuring the workstation setup is done the right way for smooth, reliable performance.

Steps to Setting Up QuickBooks on a Workstation and Server

You can easily configure QuickBooks in multi-user mode using the QuickBooks Server utility Manager. This setup allows multiple users to access the same company file simultaneously, enhancing collaboration and efficiency. To do this, you’ll need to apply settings in QuickBooks Desktop, your server computer, and Windows.

Method 1: Steps to Install QuickBooks on the Server Computer/Machine

In a multi-user network setup, one system hosts your company’s files, which is known as the server computer. Other systems connected to it are called workstations.

Follow these steps to install QuickBooks on your server machine:

• Download and install QuickBooks Desktop on your server computer.
• When prompted to choose the installation type, select “Custom and Network Install.”
• You’ll then have two options:
  • Select “I’ll be using QuickBooks Desktop on this computer, AND I’ll be storing our company file here” if you plan to use QuickBooks directly on the server.
  • Select “I will NOT be using QuickBooks Desktop on this computer” if you only want the server to host company files.
• Follow the on-screen instructions to complete the installation.
• It’s best to store your company files on the local drive of the server system. This ensures faster performance and easier file sharing across the network.
• If you prefer to store company files on a network drive, make sure to map the drive properly before proceeding.

Method 2: Adjust Folder Permissions in Windows

To ensure QuickBooks can access and share your company files properly in a multi-user setup, you’ll need to verify and adjust your folder permission settings. Follow these steps:

• Click the Start menu and open File Explorer.
• Locate the folder where your QuickBooks company file is stored.
• Right-click the folder and select Properties.
• Go to the Security tab and click on Advanced.
• Choose QBDataServiceUserXX (the version number corresponds to your QuickBooks year).
• Click Edit, and make sure all the following permissions are set to Allow:
  • Traverse Folder / Execute File
  • Read Extended Attributes
  • List Folder / Read Data
  • Read Attributes
  • Create Folders / Append Data
  • Write Attributes
  • Write Extended Attributes
  • Create Files / Write Data
  • Read Permissions
• If you’re unable to update these settings manually, try this alternate method:
  • Locate the company file folder again.
  • Right-click it and select Properties.
  • Open the Security tab and click Edit.
  • Select QBDataServiceUserXX from the list.
  • Check the box for Full Control and then click Allow.
  • Choose Apply, then click OK to save your changes.

Note: Correct folder permissions ensure that all users on your network can open, edit, and save QuickBooks files without interruption.

Method 3: Install QuickBooks Database Server Manager

The QuickBooks Database Server Manager (QBDSM) is an essential tool that allows multiple users to access the same company file across a network. It ensures that data is shared smoothly and securely between all connected systems.

When you install QuickBooks Desktop, the Database Server Manager is automatically installed on the server computer. However, if it wasn’t installed or needs to be reinstalled, you can set it up manually.

Steps to Install QuickBooks Database Server Manager:

• Download the latest version of the QuickBooks Database Server Manager from Intuit’s official website.
• Run the installer and follow the on-screen prompts.
• When prompted, select Custom or Network Install.
• Choose one of the following options:
• I’ll be using QuickBooks Desktop on this computer, AND I’ll be storing… → if you want to use QuickBooks and host files on the same system.
• I will NOT be using QuickBooks Desktop on this computer… → if the computer will only host the company files.
• Once the installation is complete, restart your system.
• After setup, open QuickBooks Database Server Manager to scan your folders containing company files. This ensures they’re properly configured for multi-user access.

Note: Keeping your Database Server Manager updated helps prevent connection issues and improves performance when working in multi-user mode.

Method 4: Adjust Administrative Rights

Ensuring that QuickBooks and its associated services have administrative rights is essential for smooth network communication and multi-user functionality. Follow these two steps to set it up correctly.

Step 1: Create a Windows User Account

• Click the Start menu.
• Go to All Programs.
• Select Windows Small Business Server.
• Open the Windows SBS Console.
• Choose the Users and Groups option.
• Click Add a new user account.
• Enter the required user information, then follow the on-screen instructions in the Add a New User Account Wizard.
• Assign the new user administrator rights when prompted.
• Click Finish to complete the process.

Step 2: Grant Admin Access to QuickBooks Programs

When QuickBooks Database Server Manager is installed, it automatically creates a Windows user (QBDataServiceUserXX) for QuickBooks services. This user needs administrative privileges to function correctly across the network.

Here’s how to grant admin rights:

• Close QuickBooks Desktop.
• Click the Start button and open the Control Panel.
• Select User Accounts.
• Find and select QBDataServiceUserXX (the “XX” varies based on your QuickBooks version).
• Click Change the account type.
• Select Administrator.
• Click Change Account Type and then Apply to save the changes.

Note: After assigning administrative rights, restart your computer to ensure all permissions take effect properly before reopening QuickBooks in multi-user mode.

Method 5: Run QuickBooks Database Server Manager

After installing the QuickBooks Database Server Manager, you need to scan your company files to enable smooth access for multiple users. This process ensures that QuickBooks can recognize and share the files across all connected systems.

Follow these steps to run and use the Database Server Manager:

• Open the QuickBooks Database Server Manager from the Start menu or the QuickBooks Tools Hub.
• Click on the Scan Folders tab.
• Choose Add Folder, then browse and select the folder that contains your QuickBooks company files (.QBW).
• Once added, click Scan to begin scanning the folder.
• When the scan completes, you’ll see your company files listed under QuickBooks Company Files Found.
• Close the tool and reopen QuickBooks Desktop on each workstation to check access.

Note: The Database Server Manager automatically monitors your drives and network for any changes. It ensures all users can access the company file without interruptions in multi-user mode.

Method 6: Enable Hosting Mode in QuickBooks

To allow multiple users to access your QuickBooks company file at the same time, you must enable hosting mode on the server computer.

Follow these simple steps:

• Open QuickBooks Desktop on your server computer.
• Go to the File menu from the top toolbar.
• Select Utilities from the dropdown list.
• Click on Host Multi-User Access.
• When prompted, click Yes to confirm and enable hosting.

Note: Only the server computer should have hosting turned ON. All other workstations should have hosting OFF to prevent connection conflicts.

Method 7: Configure Windows Firewall and Security Settings

To make sure QuickBooks works smoothly in a multi-user network, your Windows Firewall must allow QuickBooks to communicate freely between the server and workstations. Blocking these connections can trigger errors like H202, H505, or file access issues.

Follow these steps to set up your Firewall correctly:

• Click on the Start button and open the Control Panel.
• Go to System and Security → Windows Defender Firewall.
• On the left side, click Advanced Settings.
• In the new window, right-click Inbound Rules, then select New Rule.
• Choose Port, and click Next.
• Select TCP, and in the Specific Local Ports field, enter the QuickBooks ports used for your version.
• For example, QuickBooks 2024 uses 8019, 56728, 55378-55382.
• Click Next, then select Allow the Connection.
• Continue clicking Next, name the rule (e.g., “QuickBooks Ports”), and click Finish.
• Repeat the same steps under Outbound Rules.
• Once done, restart your computer and open QuickBooks in multi-user mode to confirm that the connection is successful.

Note: If you’re using a third-party antivirus or internet security program, make sure QuickBooks and its services like QBDBMgrN.exe and QBW32.exe are added as exceptions in those programs, too.

Connect the QuickBooks Server Machine to Client Systems

Connecting your QuickBooks server to client computers allows multiple users to access and update the same company file at the same time. This setup ensures smooth collaboration, centralized data storage, and efficient multi-user functionality across your network.

Step 1: Set Up the Server on a Remote System

Before granting remote or multi-user access, you’ll need to map the server (or host) as a network drive on each workstation. The QuickBooks Database Server Manager helps configure these connections properly.

Follow these steps to set up the server:

• On the server system, download and install QuickBooks Desktop.
• Open QuickBooks, click on the File menu, and choose Switch to Multi-User Mode.
• A Multi-User Hosting Setup window will appear. Click Yes to enable hosting.
• QuickBooks will automatically install and run QBDBMgrN.exe as a background service.
• When prompted with the Multi-User Setup Information screen, click OK to confirm.
• Go to the Company menu and select Users → Set Up Users and Roles.
• Click New, then add the required users and assign appropriate roles or permissions.
• Once this process is complete, your server is now ready to host company files and allow client systems to connect for multi-user access.

Do you want to manage one or more companies in one QB, check out complete details QuickBooks Enterprise For Multiple Company setup.

Step 2: Configure the Workstation Setup Remotely

After setting up the server, you must configure each workstation to access the shared company files remotely. This setup ensures that all systems can communicate seamlessly over the same network.

Follow these steps on each workstation:

• Open the Control Panel on the workstation.
• Select Network and Sharing Center.
• Click Change Advanced Sharing Settings from the left-hand panel.
• Expand the network profile type you’re currently using (e.g., Private or Public).
• Under Network Discovery, select Turn on Network Discovery.
• Scroll to Password Protected Sharing and choose Turn off Password Protected Sharing to allow access without login prompts.
• Click Save Changes to apply the new settings.

Once completed, your workstation will be ready to detect and connect to the QuickBooks server for smooth multi-user functionality.

Steps to Configure QuickBooks Database Server Access

Setting up proper access through the QuickBooks Database Server allows multiple users to work on the same company file securely. Follow these steps to configure access on your server and workstations:

On the Server (Administrator Setup)

• Open QuickBooks Desktop on the server computer.
• Go to the File → Utilities menu.
• Select Host Multi-User Access to enable multi-user mode on the server.
• Navigate to the Company → Set Up Users and Passwords menu.
• Click Set Up Users → Add User.
• Enter a username and password for the new user.
• Assign the appropriate access permissions, including options for changing or deleting transactions.
• Click Finish to save the new user settings.

On Each Workstation

• Open QuickBooks Desktop.
• Go to File → Open or Restore Company.
• Select Open a Company File and click Next.
• Browse to the network location where your company file is stored (the folder managed by QuickBooks Database Server Manager).
• Select the company file and click Open.
• Enter the username and password assigned to your workstation, then log in.

Note: Make sure every workstation is connected to the same network and that folder permissions are correctly configured for smooth multi-user operation.

Issues during QuickBooks Server client setup

• Error: Fixing the Connection
• QuickBooks Not Connecting To Server
• Error: You are not connected to the server
• QuickBooks Server Busy Or Time Out Error
• Error: Specify the Server and Company Data File
• Point of Sale is grayed out
• POS error message 181002: The Server workstation is not running with not accessible company file

The reasons behind the errors mentioned above associated with the Server setup are below:

• Not enable multi-user mode.
• A third-party application or Firewall blocks the server and workstation communication.
• Network connection errors
• Dynamic IP address
• Incorrect configuration of the Network & folder permissions

You can go for the QuickBooks Hosting solution if you don’t have enough budget and staff to manage QB on a Server.

How to Fix QuickBooks Client-Server Setup Errors

QuickBooks client-server errors usually occur due to network issues, improper file permissions, or incorrect configurations. Fixing these issues ensures smooth multi-user access and uninterrupted workflow.

Method 1: Verify Multi-User Mode is Enabled

If QuickBooks is currently in multi-user mode, switch to single-user mode:

• Click the File menu → Switch Company File to Single-User Mode.
• Refresh the multi-user connectivity:
• Go back to the File menu and select Switch Company File to Multi-User Mode.
• This process ensures that all workstations reconnect properly to the company file.

Method 2: Rename the MS Activity File

• Locate the folder containing the MSActivity file.
• Right-click the file and select Rename.
• Rename it to OLDWSActivity.
• Close the Point of Sale (POS) on all workstations before reopening QuickBooks.
• Renaming this file helps resolve connectivity or session conflicts caused by outdated or corrupted activity files.

Conclusion

Setting up QuickBooks Server-Client configuration is crucial for businesses that require multi-user access to the company file. Proper setup ensures data integrity, real-time collaboration, and smooth workflow across all workstations. By following best practices, installing Database Server Manager, configuring hosting correctly, and maintaining network stability, you can minimize errors and maximize productivity. For advanced troubleshooting or setup assistance, AccountsPro QuickBooks experts provide step-by-step support to ensure seamless multi-user operation.

Frequently Asked Questions