QuickBooks is one of the most widely used accounting software for businesses of all sizes. It allows multiple users to access company files in a multi-user environment, enhancing collaboration and efficiency. However, users sometimes encounter technical glitches, such as QuickBooks Error H505, which occurs when trying to access a company file stored on another computer.

In this blog, we’ll explore the causes, symptoms, and solutions for QuickBooks Error H505 so that you can resolve the issue and resume your accounting tasks smoothly.

What is QuickBooks Error H505?

QuickBooks Error H505 belongs to the H-series errors that usually occur when users try to switch to multi-user mode. It happens when the workstation is unable to access the company file on the server due to improper hosting settings, network configuration issues, or blocked communication between QuickBooks and the host computer.

This error prevents multiple users from working on the same company file, disrupting the workflow.

Common Causes of QuickBooks Error H505

Several factors can lead to QuickBooks Error H505, including:

1. Incorrect Hosting Configuration – When QuickBooks is not correctly set up to host company files in a multi-user environment, it can trigger this error.
2. Blocked Communication by Firewall or Security Software – The firewall may block QuickBooks from accessing the network, preventing a connection between the workstation and the server.
3. Damaged or Incorrect Network Data (.ND) File – The .ND file allows QuickBooks to recognize network settings. If it is damaged or incorrectly configured, QuickBooks may fail to establish a connection.
4. QuickBooks Database Server Manager Issues – If the Database Server Manager is not running properly, QuickBooks will have trouble accessing the multi-user network.
5. Incorrect DNS Settings – Wrong DNS settings can prevent proper communication between the server and workstations.
6. Services like QuickBooksDBXX and QBCFMonitorService Are Not Running – These services must be running to enable multi-user mode. If they are stopped, QuickBooks will not function properly in a network setup.

Symptoms of QuickBooks Error H505

When you encounter QuickBooks Error H505, you may notice the following signs:

• Error Message: "This company file is on another computer, and QuickBooks needs some help connecting."
• QuickBooks fails to switch to multi-user mode.
• The system becomes slow or unresponsive when trying to access the company file.
• Workstations are unable to connect to the server.
• Frequent freezing or crashing of QuickBooks.

If you notice any of these symptoms, follow the troubleshooting steps below to resolve the issue.

How to Fix QuickBooks Error H505

Solution 1: Verify and Correct Hosting Settings

Ensure that only the server (the computer that stores the company file) has hosting enabled.

1. On the Server Computer:

• Open QuickBooks and go to File > Utilities.
• If you see Host Multi-User Access, do not change anything (this means hosting is disabled, which is correct for workstations).
• If you see Stop Hosting Multi-User Access, click on it to disable hosting on the workstation.

1. On the Workstations:

• Open QuickBooks and go to File > Utilities.
• Ensure that Host Multi-User Access is not enabled.

Solution 2: Configure Windows Firewall Settings

To allow QuickBooks to communicate over the network, update firewall settings:

1. Open Control Panel and go to Windows Defender Firewall.
2. Click on Advanced Settings, then go to Inbound Rules.
3. Click New Rule > Program > Next.
4. Select This Program Path and browse to locate QuickBooks executable files (e.g., QBDBMgrN.exe, QBW32.exe).
5. Click Next, choose Allow the Connection, and apply the rule for Domain, Private, and Public.
6. Repeat the process for Outbound Rules.
7. Restart the computer and check if the error persists.

Solution 3: Delete and Recreate the .ND File

The .ND (Network Data) file helps QuickBooks locate and access company files on the network. If it is corrupt, QuickBooks may fail to connect.

1. Locate the .ND File:

• Open the QuickBooks folder where your company file is stored (e.g., C:\Users\Public\Public Documents\Intuit\QuickBooks\Company Files).
• Find the file with the .ND extension (e.g., CompanyFile.qbw.nd).

1. Delete the .ND File:

• Right-click on the file and select Delete.

1. Recreate the .ND File:

• Open QuickBooks Database Server Manager (found in the QuickBooks Tool Hub).
• Click Scan Folders and add your QuickBooks folder.
• Click Start Scan to create a new .ND file.

1. Restart QuickBooks and check if the issue is resolved.

Solution 4: Use QuickBooks Database Server Manager

QuickBooks Database Server Manager (QBDBSM) allows workstations to access company files over a network. If it’s not running correctly, Error H505 may occur.

1. Open QuickBooks Database Server Manager from the Start menu.
2. Click Scan Folders and add the folder containing your QuickBooks company file.
3. Click Start Scan and wait for the process to complete.
4. Restart the server and workstations.
5. Open QuickBooks in multi-user mode and check if the issue is resolved.

Solution 5: Restart QuickBooks Services

Ensure QuickBooks services are running on the server:

1. Press Windows + R, type services.msc, and press Enter.
2. Look for QuickBooksDBXX (XX represents your QuickBooks version, e.g., QuickBooksDB30 for QuickBooks 2020).
3. Right-click it and select Restart.
4. Do the same for QBCFMonitorService.
5. Restart QuickBooks and try switching to multi-user mode.

Solution 6: Check Network Connectivity

• Use the Ping Command to test connectivity between workstations and the server:

1. Press Windows + R, type cmd, and press Enter.
2. Type ping [Server Name] and press Enter.
3. If you receive a response, the network is connected. If not, there may be a network issue.

• Restart the router and check network cables.

Preventing QuickBooks Error H505

To avoid this error in the future:

✔️ Ensure that only the server has hosting enabled.

✔️ Regularly update QuickBooks to the latest version.

✔️ Keep Windows Firewall and antivirus settings updated.

✔️ Use a stable network connection to avoid connectivity issues.

✔️ Periodically restart QuickBooks Database Server Manager.

Final Thoughts

QuickBooks Error H505 can be frustrating, but with the right troubleshooting steps, it can be resolved efficiently. By following the solutions above, you can restore QuickBooks’ multi-user functionality and continue managing your business finances without interruptions.

If you still face issues, consider contacting QuickBooks Support for further assistance.