How to Setup to Multi-User Mode in QuickBooks Desktop?

To set up Multi-User Mode in QuickBooks Desktop, open the company file that you want to share with others or create a new company file folder (if it does not exist) and ensure that the company file is hosted on the server computer. 

Multi-User Mode in QuickBooks Desktop allows multiple users to access the same company file simultaneously from different workstations.

Multi-User Mode in QuickBooks Desktop operates in a shared network environment and requires a host computer to manage and share the file. The number of users who can work on the same QuickBooks file at the same time is typically determined by the seat count associated with the valid QuickBooks license.

You can use multi-user mode in QuickBooks Desktop in two ways:

• Server-Workstation Setup: The server hosts the company files, and workstations access them.
• Server-Only Install: Only the server has QuickBooks installed, and all users access it remotely.

Prerequisites /Precautions To Take Before Switching to Multi-User Mode

Before you switch from your QuickBooks Desktop Multi-User Mode, make sure to take these precautionary steps to avoid any technical problems in the future.

Host Computer

• QuickBooks Desktop Latest Version: Keep the QuickBooks Desktop up-to-date before proceeding with the process. The latest version of QuickBooks Desktop provides new benefits and security enhancements. To update the QuickBooks Desktop latest release, visit the official QuickBooks website.
• Install QuickBooks Database Server Manager: Make sure to install QuickBooks Database Server Manager on your server computer and ensure that the database server mode can open the company file. 
• Enable Multi-User Hosting: Make sure that you have enabled multi-user access to QuickBooks on the host computer.
• Company File on Local Hard Drive: Store your company file on the local hard drive of the server computer (C: drive) for easier network sharing and better access permissions.

Workstations

• Connected with Host computer: Ensure that the user’s computer, which is connected to the host computer, can access the company file and the set of financial dates simultaneously.
• Configure Network Settings: Make sure the host computer and networked computers are on the same network to enable communication and sharing of the company file.

Users & Permission 

• Folder permission: Make sure that the folder containing the company file has “Full Control” permissions, granting all “read”and “write” access to all users who need it. You can limit user access to certain areas of QuickBooks to safeguard sensitive information.
• User ID & Password: Make sure that the users have correct login credentials to access the financial data.
• QuickBooks License: Make sure that each associated user should have a valid QuickBooks Licence for accessing the company file.You can also install an independent and licensed copy of QuickBooks on each local workstation. This ensures smooth functioning and avoids conflicts.

Network Issues 

• Stable Network: Make sure to have a stable and a reliable internet connection before starting the process, as any interruption could impact data integrity and user access.
• Firewall Settings: Ensure your firewall settings allow QuickBooks Desktop’s network traffic. Configure the firewall and internet security settings to enable communication between the host and workstations.
• QuickBooks File Doctor: You can run the QuickBooks File Doctor to resolve any issues with the company file or network settings.

System Requirements for QuickBooks Multi-User Mode Setup

The system requirements for QuickBooks Desktop Multi-User Mode Setup are as follows: 

• QuickBooks Desktop Version: Multi-User Mode is supported in QuickBooks Pro, Premier, and Enterprise editions.
• Network Setup: The company file must reside in a shared network folder or on a server that all users can access.
• Licenses: Each user who accesses QuickBooks in Multi-User Mode needs a valid QuickBooks license. 

Keep these requirements in mind to ensure smooth operation when using QuickBooks in a multi-user mode.

Process of Setting Up Multi-User Mode in QuickBooks Desktop?

To make the switch from QB Single-User mode to Multi-User mode follow the steps mentioned below:

Note: When setting up multi-user mode in QuickBooks Desktop, it’s recommended to store your company files on the local hard drive of your server computer. This ensures better performance and reliability for accessing the files across multiple users.

Step by Step to Proceed to setup multi-user mode in QuickBooks Desktop

Step 1: Install QuickBooks on Your Host Computer

1. Download QuickBooks from the official web page.
2. Complete the installation process by following the on-screen instructions.
3. Choose the Multi-User Host Installation option. 

Step 2: Enable Multi-Host User Access on the Host Computer

1. Open QuickBooks and click on File.
2. Select Utilities and then choose Multi-Host User Access.
3. If the option Stop Hosting Multi-User Access appears on the screen, it means you are already hosting QuickBooks in multi-user mode. 
4. Otherwise, follow the instructions displayed on the screen to enable Multi-Host Access.

Step 3: Scan Company File with QuickBooks Database Server Manager

1. Locate your company file on your PC.
2. Click on the Start button and go to Programs.
3. Open QuickBooks Database Server Manager.
4. Choose Scan Folder to continue.
5. Add the specific location and folder where you want to save the File.
6. Click OK to proceed.
7. If needed, add a new folder using the Add Folder option.
8. Click Scan to automate the scanning process.
9. After completion, mark the tick and click Close.

Step 4: Prepare the Company File for Multiple Users Access

1. Add all users and grant them access to the company file.
2. Secure your company data by setting a password to protect it from unauthorized access. 

Step 5: Log In to the Company File with Other Users

1. Coordinate with different users to access the QuickBooks company file and log in.
2. Ensure that the PC hosting the company file is powered on. 

To set up the recommended multi-user mode:

1. Navigate to the File menu and select Utilities.
2. Choose Host Multi-User Access.
3. Confirm by selecting Yes in the confirmation window.

Process to Set Up QuickBooks Desktop Server for Multi-User Access

To set up QuickBooks Desktop Server to host multi-user access, follow these steps to ensure your network and permissions are properly configured:

Consider the steps mentioned below to set up a Multi-User Network in QuickBooks:

Step 1: Download and Install QuickBooks Desktop

1. Download QuickBooks and save the installation file.
2. Follow the installation process, choosing the custom and network install options.
3. Select whether you’ll use QuickBooks Desktop on the current PC or if you want the full version on the server system (which will host files). 

Step 2: Switch to Multi-User Hosting

1. Open QuickBooks Desktop.
2. Update your QuickBooks company file to the latest edition if needed.
3. Go to the File menu in the upper left-hand corner and click on Utilities, then select Host Multi-User Access.
4. If you’ve already set up multi-user hosting, proceed to the next step. 

Step 3: Firewall and Security Settings Configuration

1. Open the Start menu and check the firewall settings.
2. Select Windows Firewall and click on the Advanced Settings.
3. Choose Inbound Rules and then select New Rules.
4. Click on Port and proceed.
5. Specify the required ports for your QuickBooks version using TCP.
6. Allow the connection.
7. Register profiles and move to the next step.
8. Assign a name to the rule and complete the process.
9. Finally, open QuickBooks in multi-user mode. 

Step 4: Configure Folder Permissions for Sharing Company Files 

Follow the steps below to set folder and windows access permissions for sharing company files.

1. Right-click on the folder which contains the company file.
2. Go to Properties and select Security.
3. Click on Edit.
4. Choose QBDataServicesUserXX (where XX represents a specific QuickBooks version).
5. Select Full Control and click Allow.
6. Click Apply and then OK.
7. Set up Windows access permissions for sharing company files. 

To Directly share set the folder permission on Windows 10, 8, or 7:

1. Press Windows + R to open the file explorer.
2. Locate the folder with the company files.
3. Right-click on the folder with company files.
4. Choose Properties and Sharing Options.
5. Click on Share and select the corresponding QBSataServiceUserXX. 

Step 5: Download Database Server Manager

1. Download and update QuickBooks Desktop, and the Database Server Manager will update automatically.
2. Install it on your server computer (the one hosting your company files).
3. Ensure the Database Server Manager has permission to run on your server computer.
4. Scan your company files so they can be accessed over your network. 

Step 6: Give Windows Admin Rights to Allow Multi-user Access

For Windows 10 users:

1. Open Settings, go to Accounts and select Add another person on this PC.
2. Choose “I don’t have this person’s sign-in information” and create a user without a Microsoft account.
3. Assign a name and password to the account.
4. Provide admin rights to the new user and select the account type as Admin. 

For Windows 8 and 7 users:

1. Press Ctrl + R, open the Control Panel and select Manage another account.
2. Create a new account, assign a username, and choose the admin role. 

Step 7: Start With a Company File Located on a Remote System in QuickBooks

1. Open the QuickBooks file menu.
2. Select Change to Multi-User Mode.
3. In the Multi-User Setup Hosting window, choose Yes.
4. Click OK on the Multi-User Setup Data window.
5. Add anticipated users by opening the company file and clicking on Set Up Users and Passwords.
6. Click Next, then select Add Users separately.

How to Open a Company file in Multi User Mode in QuickBooks Desktop?

QuickBooks uses a service to manage company file access:

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

In the Windows Control Panel, you can find the service in User Accounts under Users for this computer.

QuickBooks Desktop requires 3 conditions to be met before it can allow access to company files:

• Windows File Permissions: The user who is logged in must have access to the type Full control, which means the type of permission for the file will be the ability to view, open, and alter it.
• Database Server mode: shows that the database server can open the company file.
• QuickBooks User login: Every single user demands a QuickBooks user login and password.

Once these 3 requirements are fulfilled, you can open the company file.

Features available in Single-user Mode and Multi-user Mode

To switch from Single-user Mode to Multi-user Mode in QuickBooks Desktop, Go to the QuickBooks File menu and select either “Switch to Single-user Mode” or “Switch to Multi-user Mode.”

Some functions like Payroll and Bank Feed,have a lock-out system in Multi-user Mode, which prevents multiple users from accessing the same function simultaneously.

Advantages of QuickBooks Multi-User Mode

QuickBooks’ multi-user mode promotes collaboration, efficiency, and accuracy, which makes it an excellent choice for businesses with multiple team members.

• Collaboration Efficiency: Multi-user mode allows several team members to work simultaneously on the same QuickBooks company file. Users can input data, reconcile accounts, and generate reports at the same time, which helps in enhancing productivity.
• Real-Time Updates: The changes made by one user are instantly visible to the entire team. This real-time synchronization ensures accurate financial data and prevents conflicts.
• Centralized Data Storage: The company file is stored on a centralized server, making it accessible to all authorized users and reducing the need for manual file transfers.
• Enhanced Security: You can set user-specific access levels and some certain actions  or sensitive data can be restricted. The Password protection feature ensures that only authorized personnel can access the file.
• Scalability: As your business grows, multi-user mode accommodates additional users seamlessly, so there is no need to switch software or disrupt operations.
• Reduced Downtime: Users can work independently without waiting for others to finish tasks. This minimizes downtime and keeps operations running smoothly.
• Improved Communications: Multi-user mode enhances team communication by keeping everyone informed about transactions, invoices, and reports.
• Better Resource Management: Multiple users can utilize the same resources, such as storage space, memory, and processing power, resulting in cost savings and enhanced overall system performance.

Best Practices for Managing QuickBooks in Multi-User Mode

Here are the guidelines for managing QuickBooks in Multi-User Mode:

• Backup Company File Regularly: Perform regular backups of the company file to safeguard against data loss or corruption. Schedule automatic backups to ensure data integrity and quick recovery in case of any issues.
• Train Users on Multi-User Etiquette: Educate all users on proper Multi-User Mode etiquette to minimize data conflicts. Encourage users to communicate effectively and avoid editing the same transaction simultaneously.
• Restrict Access to Sensitive Data: Assign user permissions carefully, granting access only to the data necessary for each user’s role. Restrict sensitive financial information to authorized personnel to maintain data security.
• Monitor System Performance: Regularly monitor your network and computer performance, especially during peak usage times. Upgrade hardware and network infrastructure if needed to maintain optimal performance of QuickBooks in Multi-User Mode.
• Keep QuickBooks Updated: Regularly update QuickBooks to the latest version. Install any available updates or patches to gain access to the latest features, security upgrades, and bug fixes.

Conclusion

QuickBooks Multi-User Mode allows seamless collaboration and efficient financial management within the organization. You can streamline workflows and boost productivity by following the setup process and best practices mentioned in this article.

Frequently Asked Questions (FAQs)

Q 1. Can You Connect Multiple Accounts to QuickBooks?

You can manage multiple companies under a single QuickBooks account. Each company file requires its own subscription, but you can access all of them with the same sign-in credentials.

Q 2. Why does QuickBooks keep Going to Single-User Mode?

QuickBooks defaults to a single-user mode for a smooth experience. To enable collaboration, switch to multi-user mode by selecting the option when opening the company file.

Q 3. How to Install QuickBooks Pro on a Server for Multiple User?

QuickBooks Pro offers a multiuser mode for one person on two computers or multiple users. Each user needs a valid license. QuickBooks Database Server Manager syncs company files across authorized computers on the network and scans for updates.

Q 4. How to switch to multi user mode in QuickBooks desktop?

To switch modes, first go to the File menu in QuickBooks then choose Switch to Single-user Mode or Switch to Multi-user Mode option.

Note: Multiple users can access the file, but some functions like Payroll and Bank Feeds have a lockout system. This prevents simultaneous access to those specific functions by multiple users.

Q 5. Why is Multi-User Mode Not Working in QuickBooks Desktop?

Poor network connectivity or software interruptions can block multiple users from accessing the QuickBooks company file. This issue typically arises when the multi-user connection on the server hosting the company file is disabled, or when firewall or antivirus settings prevent communication between user computers.

Q 6. How can multiple users access QuickBooks at the same time?

Follow the below steps to access QuickBooks by multiple users at the same time:

1. Open File Explorer: Press the Windows Start button and open File Explorer.
2. Locate Folder: Find the folder with your company files, right-click, and select Properties.
3. Adjust Security Settings: Go to the Security tab, select Advanced, and then choose QBDataServiceUserXX. Click Edit and set all options to Allowed.
4. Apply Changes: Click Apply, then OK.

Next Steps:

1. Press Windows + E to open File Explorer.
2. Right-click your company folder and go to Properties > Sharing > Shared Add.
3. Select QBDataServiceUserXX for your version.
4. Set permissions to Full Control and Share for both users.

Following these steps ensures proper folder permissions and network access for QuickBooks.

Q 7. Can Two People Use the Same QuickBooks Account?

Yes, two people can access the same QuickBooks account simultaneously, but you’ll need at least two QuickBooks licenses—one for each user. Here’s how to set it up:

1. Purchase Licenses: Purchase an extra license for each user.
2. Connect Computers: Ensure both computers are on the same network.
3. Share the File: Set up the company file for shared access between users.
4. Sync Licenses: On the first computer, go to Help > Manage My License > Sync License Data Online.
5. Enable Multi-User Mode: Switch to multi-user access via File > Switch to Multi-User Mode.