Sync QuickBooks on Two Computers: Hosting Options

Setting up QuickBooks sync between different systems means your financial data remains up-to-date, free from discrepancies, and portably accessible from designated sources. QuickBooks synchronization frees you from the constraints of switching between systems and relying on specific machines to access the financial records of your business. If you are managing large teams or multiple computers are involved in your daily business operations, it becomes important for the systems to stay consistent and in alignment with each other to provide identical and accurate data whenever required.

We’ll show you how to sync QuickBooks on two computers to streamline your business and get hold of your entire financial data in a single place. There are different ways to sync QuickBooks, which we have elaborated in detail with the help of this guide. Read carefully to learn about the circumstances suitable to sync QuickBooks between two computers and which syncing setup will work best for your business. Read on to get more details!

All You Need to Know About QuickBooks Desktop Sync: Multi-User Setup

The only possible way to synchronize QuickBooks across different systems is by connecting them through a multi-user network. We’ll clarify what a multi-user network is, what its requirements are, and different ways to sync QuickBooks between two computers using the multi-user network.

What is a Multi-User Network in QuickBooks Desktop?

In this setup, a server (either local or remote) hosts the company file, whereas the remaining workstations can access and work on the company file simultaneously. This allows all the authorized users to modify the company file and add, erase, or edit the financial data in it. All the changes made to the company file are instantly updated and visible to all the users in real time. By setting up a multi-user network that includes multiple systems, you can keep them in sync and reduce the burden of accessing/modifying financial data on every system individually.

Types of Hosting in QuickBooks

QuickBooks Desktop uses a Database Server Manager to manage company file access in a multi-user network. When DBSM isn’t used as a service (QuickBooksDBXX), it simply runs as a normal process (Windows user running QuickBooks). There are basically three types of hosting you can use to sync QuickBooks across different systems and locations. Here they are:

Dedicated Hosting:

Dedicated hosting refers to a setup where a third-party hosting service is used to save the company files on a cloud server or a dedicated server (where QuickBooks is installed but not used) and share them with all the users/systems.

Peer-to-Peer Hosting:

Peer-to-Peer Hosting refers to a setup where the company files are stored on a dedicated system (server) with QuickBooks Desktop installed. You can use the system for running QuickBooks and hosting the company files, whereas all the other systems can access the file through a multi-user network.

Alternate Hosting:

Alternate hosting refers to a setup where only a single computer is allowed to access the server (where QuickBooks isn’t installed) containing the company files, and all the other systems connect with the server system to access the company file.

Different Hosting Modes in QuickBooks

Hosting modes are set for each version of QuickBooks on every system to be involved in the multi-user network. Even if you have multiple QB versions running simultaneously on your computer, the hosting mode needs to be set individually for each of them. QuickBooks basically has three hosting modes, namely:

Hosting off or Not Hosting mode:

• Database Server Manager runs as a normal process and not as a Windows service.
• Uses shared memory to connect with QB Desktop.
• Multi-user mode isn’t supported.
• Company files can only be accessed through a DBSM by a user running QuickBooks on a local computer.

Hosting Local Files Only mode:

• QuickBooks Database Server Manager runs as a Windows service (QuickBooksDBXX) as well as a Windows user operating QuickBooks Desktop (QuickBooksDataServiceUserXX).
• QuickBooksDBXX constantly runs in the background whenever your computer is ON.
• Multi-user mode is supported and required.
• Users can communicate with QuickBooks Desktop from their remote systems using TCP/IP and access files using DBSM running in Hosting Local Files Only mode.

Hosting Local & Remote files mode:

• QuickBooks Database Server Manager runs as a Windows user (normal process) and starts when you sign in to your Windows till the time you sign out.
• Supports Multi-user mode and systems communicate with QuickBooks using TCP/IP.
• Allows remote systems to access company files through DBSM.
• Allows a local system to host the company files stored in it as well as those that are stored on remote systems but opened on local systems.

Note: QuickBooks Desktop uses the .ND (network descriptor) file to determine which DBSM to connect with.

Requirements for Syncing QuickBooks Using a Multi-User Network

There are some configurations that you must make on your system to ensure you can work on a different computer than the server and still sync the data concurrently. Pay attention while applying these configurations, as they are utterly important to sync QuickBooks Desktop for multiple users different locations. Proceed as suggested (reference articles attached):

Prerequisite 1: Install QuickBooks on the Server (main) computer

If you are thinking of setting up a multi-user network and using your system as the server, you must have QuickBooks installed correctly on the server and all the workstations. 

Read our dedicated article to Download and Install QuickBooks and make sure you choose the correct installation option:

• Choose ‘I’ll be using QuickBooks Desktop on this computer AND I’ll be storing our company file here so it can be shared over our network’ for installing QuickBooks and DBSM both on the server.
  
  
• Choose ‘I will NOT be using QuickBooks on this computer. I will be storing our company file here so it can be shared over our network’ if you want to install only the DBSM on your system to host the company files.

Prerequisite 2: Set up QuickBooks Database Server Manager

Database Server Manager is a utility that manages the company files on a server and ensures workstations can access the file in a multi-user network setup. 

These articles will help you understand how to install Database Server Manager and how to use DBSM for a streamlined multi-user network setup.

Prerequisite 3: Add specific firewall ports for QuickBooks Desktop

QuickBooks running in multi-user mode needs to access system files, connect with Windows services, share company files with the workstations, and use the internet wherever required. All these functions can be interrupted by antiviruses or the Windows Defender Firewall on your system. You must manually configure firewall ports and exclude QuickBooks from getting blocked by the antiviruses to ensure a successful multi-user network setup.

Use this guide to Configure Firewall Ports for QuickBooks Desktop.

Prerequisite 4: Purchase licenses for all the users

As per the Intuit policies, you must have individual licenses for all the users accessing your company file data. Only the number of users covered in your subscription plan or product purchase cost are allowed to work on the company files for free.

All the additional users must have a license to access the company file in a multi-user network. In case the users take turns accessing the company file, then you can manage with a less number of licenses than users, but if you want all the users to work on the company file simultaneously, it’ll require individual licenses for each user.

Prerequisite 5: Download latest Windows updates and sign in as an admin user

You must have the most recent version of Windows (or Mac) to ensure QuickBooks doesn’t face compatibility issues while setting up the multi-user network or sharing the company files. Also, you must be signed in as an admin user in Windows to have all the permissions required during multi-user network setup.

Here’s how to download the latest updates for Windows and Mac.

Prerequisite 6: Configure folder permissions

Your system folders must have the correct Windows permissions so that the workstations can access them in a multi-user network. 

Take a look at this article to understand how to set up folder permissions for QuickBooks Desktop.

Once all the above preparations are made, let’s proceed to the next section, which elaborates on the different methods to sync QuickBooks across multiple computers.

Different Ways to Set Up QuickBooks File Sync for Multiple Systems

We’ll now discuss how to set up a QuickBooks sync between two or more computers (locally or remotely). You must carefully choose the method best for your business needs:

Method 1: Multi-User Network within QuickBooks

This method is best for businesses requiring multiple systems and systems to work on the same company file. You can bring them all in sync by hosting a company file through the main computer (where the files are stored) and letting all the workstations access the file from it. Use these steps to establish a multi-user network in QuickBooks:

Step 1: Set up a Shared Folder on the server

Folder sharing refers to a process where you assign a folder to be shared over the network and configure its permissions and accessibility level for other users to view, access, and configure the files in the folder. This is done to enable remote access for other systems after a network drive is mapped.

Here’s how to:

• Share an existing folder:

1. Open the File Explorer (Windows + E) and go to the folder you want to share.
2. Right-click the folder you want to share and tap the Properties option in the list.
3. Navigate to the Sharing tab, select Advanced Sharing and click Share this folder. Enter a new name in the Share Name field if you want to rename the shared folder.
   
   
4. Move to the Security tab and set appropriate permissions for all the users allowed to access the folder.
   
   
5. Click Apply and then OK to save the modifications you made.

• Create a new shared folder 

1. Press Windows + R keys simultaneously to open the Run command window.
2. Type ‘shrpubw.exe’ in the text field and click Open to launch the Create A Shared Folder Wizard.
   
   
3. Click Next in the wizard and click Browse to enter the folder location beside Folder path.
   
   
4. Do as per the instructions given in the wizard to create a new shared folder on your system.

Step 2: Map the server as a Network Drive

Mapping a network drive creates a direct link to a storage location on another computer. If you map your server as a network drive, all the other systems (workstations) can access the company files from the shared location on the server as if it was their own local drive.

Read this article to map a network drive in Windows.

Step 3: Install QuickBooks on all the workstations and DBSM on the remote computer

You must install QuickBooks Desktop on all the workstations using the correct installation choice (I’ll be using QuickBooks Desktop on this computer). Also make sure DBSM is installed on the computer hosting the company files.

Step 4: Ensure Network Discovery is On and Password Protected Sharing is Off

Network Discovery must be turned ON in the server computer to ensure it is visible to all the workstations. Additionally, turn off Password Protected Sharing to avoid entering the network password to log in whenever you use the multi-user network. Apply the following steps on the server as well as on all the workstations that need remote access over the network:

1. Go to the Network and Sharing Center in the Control Panel and select Change Advanced Sharing settings.
2. Select the profile you are currently using and select Turn on Network Discovery under the Network Discovery tab.
   
3. Click Turn off password protected sharing under the Password protected sharing tab and tap Save Changes.

In Windows 11:

1. Click the Settings option in the Windows Start popup to open the Control Panel.
2. Click the Network and Internet option on the left and click Advanced Network Settings.
   
   
3. Select Advanced Sharing Settings and choose the correct network type.
4. Toggle the button for Network Discovery ON, whereas turn it OFF for Password Protected Sharing.

Step 5: Configure multi-user mode settings (both server and workstations)

Now, you must turn on the multi-user mode on the server and turn it off on all the workstations. Means, your server will be the only one running in multi-user mode, and all the workstations will run in single-user mode to access the company file. Here’s how to configure multi-user mode settings in QB Desktop:

• On the Server

1. Open your QB Desktop and access its File menu from the top.
   
   
2. Select Utilities and click the Host multi-user access option to turn on the multi-user mode.

• On workstations

1. Launch QuickBooks Desktop and go to the File menu.
   
   
2. Select Utilities and click Stop hosting multi-user access to switch it to single-user mode.

Step 6: Open a Company File

Now, you can access the company file using the following steps:

1. Access QB’s File menu and click Open or Restore Company.
   
   
2. Tap Open a Company File and hit Next.
3. Locate your company file (look for the shared drive name in the beginning).
4. Choose the company file you want to open and click Open.
5. Fill in your username and password if asked by the software.

Method 2: Using a Third-Party Hosting Service

Using QuickBooks cloud sync solutions is best if your team members or employees work from geographic locations far away from each other and you do not have the resources to purchase different licenses for everyone or install the required infrastructure.

QuickBooks allows you to hand over the entire company file hosting to a third-party service provider like Rightworks. In this setup, the company file is kept in the cloud storage offered by the service provider, and all the authorized users can access it on the cloud via the internet. This setup doesn’t require turning a local computer into a server, as everything is done through the cloud, and the service provider handles the storage and data traffic.

Method 3: Using Remote Desktop Services

This setup is nearly the same as third-party hosting, but you need to assign a physical system (server) to store the company files. Unlike third-party hosting, the company files are stored on a system, and you can let users access the system to work on the company file. This is made possible through Remote Desktop Services (RDS) offered by Microsoft. Instead of having control over the company files saved on the cloud, users can remotely control the physical system containing the company file using RDS. This method ensures you have control over the company files and none of the hosting service providers are in the loop.

Important: Read on this detailed article on how to set up QuickBooks Desktop Remote Access to learn how you can set up QuickBooks file sync using Remote Desktop Services and hosting services. In addition, you’ll also find all the Intuit-authorized hosting service providers that you can employ.

Conclusion

This guide explains how to sync QuickBooks on two computers or more to enhance team collaboration and ensure all your systems are consistent with each other. The methods to synchronize QuickBooks using a multi-user network and some QuickBooks cloud sync solutions are well explained. We hope the guide helps you sync multiple QuickBooks on systems in different geographic locations and avoid switching between systems to manage your data. You just need to execute the methods as shown to organize your business and colleagues with a synchronized financial management.

Generally Asked Questions

Can QuickBooks sync in real-time between two computers?

Yes, QuickBooks Desktop can sync in real-time between two or more computers using the multi-user network. You host a company file on the server, and all the authorized users in the network can access the file. All the changes they make in the company file are updated in real-time on the server.

How do I use a single license on two computers without multi-user mode?

When you purchase QuickBooks, there is a set number of allowed users for each QB product. The allowed number of users can work simultaneously on different computers. However, if you didn’t get the free users with your purchase or you do not want to use the multi-user network, you still have the option to use QuickBooks on different computers using a single license.

But you cannot work simultaneously on all the computers. You’ll have to use QuickBooks on one system at a time, then create a backup when you are finished. When you move to another computer, you’ll have to restore QuickBooks backup to update the financial data on that system. This back-and-forth process between systems will go on without a multi-user network. 

Is Dropbox or Google Drive safe for syncing QuickBooks files?

Up to a limit they both are safe but highly not recommended by QuickBooks as well as the Dropbox’s developer team itself. It is completely okay to save your QuickBooks backup files on Dropbox or Google Drive, but you must not use it to sync the files in case of multiple users.

We have received reports of data getting damaged or corrupt during continuous syncing with Dropbox or Google Drive as QuickBooks updates the data nearly every second. So, you can utilize them for storing backups and other static data but avoid using them for continuous sync. Use Rightworks, AbacusNext, or other Intuit-authorized hosting service providers to store and sync your data with multiple users.

How do I resolve “Network Permissions” errors during syncing?

These errors usually develop due to restrictions of the antivirus or the Windows Firewall on your system. We would advise you to turn off the antiviruses during syncing and configuring the firewall ports. Additionally, sign in as an admin user in Windows to avoid problems due to insufficient privileges. Run the QuickBooks DBSM on your computer and scan the company files on it to rectify network issues.

Can I sync QuickBooks between computers in different locations?

Yes, you can establish a multi-user network to sync QuickBooks Desktop multiple users different locations. The best option to sync QuickBooks between distant locations is to host the company file on the cloud using a third-party hosting service provider and letting other users access it via the internet.

How do I automate backups while syncing?

Check out how to create QuickBooks Backup to learn how you can turn on automatic backups while syncing. It is a crucial step to ensure your data is safe and recoverable in case of damage or loss. Additionally, you can use Intuit Data Protect to create a QuickBooks backup on your system.