# Firewall and Permissions Checklist Before Activating Multi-User Mode in QuickBooks ![Firewall and Permissions Checklist Before Activating Multi-User Mode in QuickBooks](https://hackmd.io/_uploads/r1QN6Q8Jex.jpg) Activating Multi-User Mode in QuickBooks can supercharge team productivity, allowing multiple users to access the same company file simultaneously. But without proper firewall and permissions settings, this feature may not work—or worse, cause serious data access issues. This guide walks you through a detailed checklist to get everything configured correctly before turning on Multi-User Mode. ## What is Multi-User Mode in QuickBooks? **[Multi-User Mode in QuickBooks Desktop](https://ebetterbooks.com/setup-to-multi-user-mode-in-quickbooks/)** allows multiple users to access the same company file at the same time over a network. Instead of waiting for one person to finish their task and close the file, team members can: * Enter transactions * Run reports * Reconcile accounts * Process payroll —all at once, from different computers. QuickBooks manages this using a host system (usually your server) and workstations (other computers). The host uses the QuickBooks Database Server Manager to manage file access and maintain data integrity. **Key Benefits of Multi-User Mode:** 1. Real-time collaboration 1. Improved efficiency and reduced downtime 1. Centralized access to data 1. Role-based user permissions for better control This feature is only available in QuickBooks Desktop Pro, Premier, and Enterprise versions—not QuickBooks Online, which handles multi-user access differently. ## Why Multi-User Mode is Crucial for Growing Businesses As your business grows, collaboration becomes key. Multi-User Mode allows: * Multiple team members to work in QuickBooks simultaneously * Real-time data updates for accurate reporting * Division of responsibilities (e.g., payroll, sales, and **[accounting handled](https://ebetterbooks.com/)** by different people) Without it, you may face delays and inaccuracies due to manual syncing or limited access. For businesses planning to scale or access their financial data from anywhere, it may be beneficial to [convert QuickBooks Desktop to Online](https://migratemybooks.com/). This process allows seamless migration of company files to QuickBooks Online, offering cloud-based accessibility, automatic updates, and easier multi-user collaboration without the complex firewall and permission configurations required in Desktop’s Multi-User Mode. By considering this option, growing teams can maintain real-time access to critical accounting information while reducing the IT overhead of network setups. ## What Happens If Firewall or Permissions Are Misconfigured Improper firewall or folder settings can lead to: * Connection errors when trying to switch to Multi-User Mode * "H202" or "H505" errors indicating network issues * Inability to share the company file across devices * Data corruption risks due to forced sync failures That’s why this checklist is essential before activation. ## Firewall and Port Configuration Checklist Your firewall settings must allow QuickBooks communication. Here's what to check: ### ✅ 1. Open QuickBooks Ports Depending on your version, allow the following ports through your firewall: * QuickBooks Desktop 2024: 8019, 56728, 55378-55382 * 2023: 8019, 56727, 55373-55377 * 2022: 8019, 56726, 55368-55372 (Replace numbers accordingly for your version.) ### ✅ 2. Add QuickBooks Programs to Firewall Exceptions Add these to allowed programs in your firewall: * QBDBMgrN.exe * QBCFMonitorService.exe * QuickBooks.exe * FileManagement.exe ### ✅ 3. Enable Inbound and Outbound Rules Create custom rules in Windows Defender or your antivirus firewall to allow traffic in both directions for the above executables and ports. ### ✅ 4. Check for Third-Party Antivirus Firewalls If you're using McAfee, Norton, or others, you must manually create exceptions or disable blocking features. ## File and Folder Permissions Checklist QuickBooks needs read/write permissions to share the company file. ### ✅ 1. Set Folder Sharing on the Host Computer * Right-click on the QuickBooks folder (e.g., C:\Users\Public\Documents\Intuit\QuickBooks\Company Files) * Go to Properties > Sharing > Advanced Sharing * Enable sharing and give access to Everyone ### ✅ 2. Check NTFS Permissions Ensure the user groups accessing QuickBooks have: 1. Full Control 1. Modify 1. Read & Execute 1. Read 1. Write ### ✅ 3. Disable User Account Control (UAC) Temporarily This can sometimes block access to files: * Go to Control Panel > User Accounts > Change User Account Control Settings * Set to "Never Notify" (temporarily) ## Windows Settings That Affect Multi-User Mode Beyond firewalls, system settings matter: ### ✅ 1. Enable Network Discovery 1. Go to Control Panel > Network and Sharing Center 1. Choose Change advanced sharing settings 1. Turn on network discovery and file/printer sharing ### ✅ 2. Use a Private Network Ensure your business network is marked as “Private” (not “Public”) to reduce restrictions. ### ✅ 3. Static IP Address for Server Assign a static IP to the server hosting the company file so port forwarding doesn’t break if the IP changes. ## QuickBooks Database Server Manager: Key Role in Multi-User Setup This free tool from Intuit is critical for Multi-User Mode: ### ✅ 1. Install on Host Computer * Use the same version as your QuickBooks installation * It enables proper handling of multi-user data access ### ✅ 2. Scan Folders 1. Open QuickBooks Database Server Manager 1. Click Scan Folders and browse to the company file location 1. This registers it for multi-user sharing ### ✅ 3. Monitor for Errors The tool also alerts you to permission or firewall issues ## Testing Multi-User Access After Setup Before going live, do this quick test: 1. On the host computer, open QuickBooks and enable Multi-User Mode. 1. On a workstation, open the same file and log in. 1. Confirm that changes made on one show up on the other. **If it fails:** 1. Recheck firewall exceptions 1. Ensure folder is shared 1. Re-scan with Database Server Manager ## Tips for Troubleshooting Multi-User Mode Issues Even after setup, you might hit a snag. Here are tips to help: * Run QuickBooks File Doctor: It auto-detects and fixes common sharing issues. * Use IP Address Instead of Hostname: Helps bypass DNS problems. * Restart QuickBooksDBXX and QBCFMonitorService * Ensure no machine is stuck in **[Single-User Mode](https://vocal.media/journal/why-your-quick-books-file-keeps-reverting-to-single-user-mode-and-how-to-prevent-it)** * Double-check that Windows isn't blocking .ND files ## Conclusion Multi-User Mode in QuickBooks is a game-changer for productivity, but it only works if firewalls and permissions are configured correctly. Skipping these steps can lead to frustrating errors, wasted time, and lost data. By following this checklist, you’ll set your team up for smooth, collaborative accounting. ## Frequently Asked Questions (FAQs) ### What is the most common reason Multi-User Mode Fails in QuickBooks? The most frequent cause is a misconfigured firewall or insufficient folder permissions **[Prevent Multi-User Mode in QuickBooks](https://hackmd.io/@LKNxKTTBS42R2FQQaE_WJA/how-to-troubleshoot-hosting-issues)** networked devices from accessing the company file. ### Do I Need to Open Specific Ports Manually? Yes, especially on third-party firewalls. QuickBooks uses unique ports based on version, and they must be opened for full functionality. ### Can I use Multi-User Mode with QuickBooks Online? QuickBooks Online allows multiple users by default. Multi-User Mode applies to QuickBooks Desktop editions only. ### What does QuickBooks Database Server Manager Actually Do? It enables simultaneous access to the company file and manages data flow between users in Multi-User Mode. ### Is it Safe to Turn off User Account Control (UAC)? Temporarily, yes. It's safe when troubleshooting, but turn it back on afterward to maintain system security.