What Are QuickBooks Errors H202 and H505?
If you're seeing the message "You are trying to work with a company file that is located on another computer, and QuickBooks needs some help connecting", you've hit one of the most frustrating QuickBooks Desktop errors: H202 or H505.
Both errors occur in multi-user mode — when multiple computers on your network need to access the same QuickBooks company file stored on a server or host machine. The difference is subtle:
- Error H202 — QuickBooks on the workstation cannot communicate with the server hosting the company file. The company file exists, but the connection is being blocked.
- Error H505 — The workstation is attempting to be both a host and a client simultaneously, creating a configuration conflict.
If multiple users are getting H202 or H505 errors, your entire team is locked out of the company file. Payroll runs, invoicing, and financial reporting all stop. Fix this before your next critical deadline.
What Causes These Errors?
Understanding the root cause helps you apply the right fix. H202 and H505 almost always trace back to one of these issues:
- Windows Firewall blocking QuickBooks ports — the most common cause by far
- QBDBMgrN service not running on the host machine
- Incorrect hosting configuration — more than one machine set to host the file
- DNS resolution failure — workstations can't resolve the server's hostname
- QuickBooks Database Server Manager not installed on the host
- Antivirus software blocking QuickBooks network communication
Make sure you know which computer is your host machine (the one that stores the company file). All fixes involving hosting settings must be done on that machine. The other computers are workstations.
Fix 1 — Run QuickBooks File Doctor (Start Here)
QuickBooks File Doctor is Intuit's official diagnostic tool. It automatically detects and fixes the most common network and file configuration issues causing H202/H505. Always try this first.
Download QuickBooks Tool Hub
Go to Intuit's official website and download the QuickBooks Tool Hub. Install it on the host machine (the computer storing the company file). As of 2025, the current version is Tool Hub 1.6.0.5.
Open Tool Hub and Select "Company File Issues"
Launch QuickBooks Tool Hub from your desktop. Click Company File Issues in the left menu, then click Run QuickBooks File Doctor.
Select Your Company File
In the File Doctor window, select your company file from the dropdown. If you don't see it, click Browse and navigate to your .QBW file. Then select "Check your file and network" and click Continue.
Enter Your Admin Password and Wait
Enter your QuickBooks admin password when prompted. The scan takes 5–15 minutes. Once complete, try opening the company file in multi-user mode again.
If File Doctor resolves your issue, you're done. If the error persists, continue to Fix 2.
Fix 2 — Configure Windows Firewall
Windows Firewall blocking QuickBooks ports is the number one cause of H202 and H505. QuickBooks requires specific inbound and outbound firewall rules to communicate across your network.
Step 1: Add QuickBooks Firewall Exceptions
On the host machine, open Windows Defender Firewall with Advanced Security (search in Start menu). You need to create inbound rules for these ports based on your QuickBooks version:
QuickBooks Desktop 2025: Port 8019, 56728, 55378-55382
QuickBooks Desktop 2024: Port 8019, 56727, 55373-55377
QuickBooks Desktop 2023: Port 8019, 56726, 55368-55372
QuickBooks Desktop 2022: Port 8019, 56725, 55363-55367
Create Inbound Port Rules
In Windows Firewall Advanced Settings → Inbound Rules → New Rule → Port → TCP → enter the port numbers for your version → Allow the Connection → apply to Domain, Private, and Public profiles → name it "QuickBooks Ports".
Add QuickBooks Executable Files as Exceptions
Also create program-based rules for these executables (found in your QuickBooks installation folder, usually C:\Program Files\Intuit\QuickBooks 20XX\):
- QBW32.exe
- QBDBMgrN.exe
- QBUpdate.exe
- QBCFMonitorService.exe
- FileManagement.exe
If you have third-party antivirus software (Norton, McAfee, Bitdefender, etc.), it may be blocking QuickBooks independently of Windows Firewall. Temporarily disable it to test — if that fixes the error, add QuickBooks as an exception in your antivirus settings.
Fix 3 — Restart QBDBMgrN Service
QBDBMgrN (QuickBooks Database Manager) is a Windows service that must be running on the host machine for multi-user access to work. If it's stopped or crashed, all workstations get H202 or H505.
Open Windows Services
On the host machine, press Windows + R, type services.msc and press Enter.
Find and Restart QBDBMgrN
Scroll to find QBDBMgrN (year) — e.g., QBDBMgrN25 for QuickBooks 2025. Right-click it and select Restart. If the status shows "Stopped", click Start.
Set to Automatic Startup
Right-click QBDBMgrN → Properties → set Startup Type to Automatic. This prevents it from stopping on the next Windows restart. Click Apply → OK.
Fix 4 — Set the Correct Host Machine
Only one computer should be set as the host for your company file. If multiple machines are set to host, QuickBooks gets confused and throws H505 errors.
On the Host Machine
Open QuickBooks → go to File → Utilities. You should see "Stop Hosting Multi-User Access" — this means hosting is ON, which is correct. Do not change this.
On Each Workstation
Open QuickBooks → go to File → Utilities. You should see "Host Multi-User Access" — this means hosting is OFF on this machine, which is correct. If you see "Stop Hosting Multi-User Access" on a workstation, click it to turn hosting OFF.
H505 is almost always caused by a workstation accidentally being set as a host. Check every computer in your network — only the server/dedicated host should show "Stop Hosting Multi-User Access" in the File menu.
Fix 5 — Edit the Windows Hosts File
If workstations can't resolve the server's computer name (DNS failure), they can't connect to the company file. Manually adding the server's IP address to each workstation's hosts file forces direct resolution.
Find the Server's IP Address
On the host machine, open Command Prompt and type ipconfig. Note the IPv4 Address (e.g., 192.168.1.100) and the computer name.
Edit Hosts File on Each Workstation
On each workstation, navigate to C:\Windows\System32\drivers\etc\. Open the hosts file with Notepad (run as Administrator). Add a new line at the bottom:
192.168.1.100 SERVERNAME
# Replace 192.168.1.100 with your server's actual IP
# Replace SERVERNAME with your server's actual computer name
Save and Test
Save the hosts file and restart QuickBooks on the workstation. Try opening the company file in multi-user mode.
Fix 6 — Verify QuickBooks Services Are Running
Two additional Windows services must be running alongside QBDBMgrN for multi-user mode to work correctly.
In services.msc on the host machine, verify these are Running and set to Automatic:
- QBCFMonitorService — QuickBooks Connection Manager. Handles communication between QuickBooks and the database server.
- QBDBMgrN (year) — QuickBooks Database Manager (covered in Fix 3).
If QBCFMonitorService is missing, you need to reinstall QuickBooks Database Server Manager from your QuickBooks installation media or download it from Intuit's website.
After applying each fix, restart QuickBooks on all machines and test multi-user mode before moving to the next fix. This helps you identify exactly which change resolved the issue.
Still Stuck? You're Not Alone.
If you've gone through all six fixes and you're still seeing H202 or H505, the issue is likely one of the following more complex scenarios:
- The company file is stored on a NAS (network-attached storage) device — QuickBooks doesn't fully support this configuration
- Your network uses VLANs or a complex subnet configuration that blocks QuickBooks ports
- The .ND or .TLG files associated with your company file are corrupted
- Windows security policies on your server are blocking QuickBooks even after firewall exceptions are added
Still Getting H202 or H505?
Our QuickBooks specialists resolve H202 and H505 remotely — usually within 2 hours. No fix, no charge.
Frequently Asked Questions
Does H202 mean my company file is corrupted?
No — H202 is a network connectivity error, not a file corruption error. Your company file is almost certainly intact. The error means QuickBooks on a workstation can't reach the company file on the server. The fixes in this guide address the connection problem, not the file itself.
Can I get H202 on a single-user setup?
H202 and H505 only appear in multi-user mode when QuickBooks is trying to connect to a company file on another computer. If you're a single user on a single machine, you won't see these errors — you might have a different error code instead.
What's the difference between H202 and H505?
H202 means the workstation can't connect to the host. H505 specifically means a workstation is configured as a host when it shouldn't be — Fix 4 in this guide (setting the correct host machine) almost always resolves H505 immediately.
Will these fixes work for QuickBooks Online?
No — H202 and H505 are QuickBooks Desktop errors only. QuickBooks Online is cloud-based and doesn't use local network hosting, so it doesn't have multi-user mode errors of this type. If you're on QBO and having access issues, that's a different problem entirely.