Working with QuickBooks Files for Your Clients

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Every QuickBooks user needs to understand how QuickBooks is designed in terms of file use and multi-user file operation. In most companies, especially those running QuickBooks Enterprise, the most common configuration is a Client-Server installation.

Client-Server Networked QuickBooks

On a Client-Server Network, QuickBooks gets installed on the Company’s designated server (computer) as well as the QuickBooks Database Server. The server also stores the Company file(s), whether that is one file, two or three files, or a dozen or more files.  The combination of the QuickBooks Database Server installation and the Company file(s) is referred to as ‘multi-user hosting environment.'

On a Client-Server Network, QuickBooks gets installed on each of the workstation computers. These workstations access the QuickBooks company file stored on the server computer over the computer network, sometimes referred to as the 'local area network' by Information Technology (IT) folks. 

The QuickBooks Database Server on the server computer controls each users’ access to, and the flow of information between, QuickBooks on each workstation and the server.  In a client-server environment, ONLY the server computer should have ‘QuickBooks hosting turned’ on.  If you have problems connecting from your workstation to the server or your Company file when you open QuickBooks on your workstation, you should contact either your company's QuickBooks Administrator, or your QuickBooks ProAdvisor.

Here is an illustration of a Client-Server Network environment:

Single-user vs. Multi-user Mode

Typically, you will be using QuickBooks in ‘Multi-user mode’ which means that multiple users can be logged-in to the same Company file at the same time.  This does NOT mean that you can be doing the exact same things at the same time. Because QuickBooks is a ‘live save’ accounting system that is continually saving your information and updating your financial data each time you complete all (or even portions) of a transaction, the QuickBooks Database Server ‘locks’ portions of the file while a transaction is being processed.  For example, two people cannot be in the exact same “customer’s record” at the same time.  While you may occasionally encounter a ‘waiting for ‘user XXX’ to finish’ message, such wait times are typically minimal.

Some activities and procedures require a user to be in ‘Single-user mode’, in these cases it is necessary to tell other users that they will need to close-out of the Company file so you can switch to single-user mode. 

If you are in multi-user mode, the same menu option located within the file menu will read "Switch to single-user mode"; when you are in single-user mode, this same menu option will read "Switch to multi-user mode".

For 2017, the following tasks, formerly requiring Single-user mode, can now be performed in Multi-user mode within QuickBooks Enterprise:

  • Print Bills
  • Print Checks
  • Create Invoices from Estimates
  • Create Bills from Purchase Orders
  • Scan Checks (using the QuickBooks Scan Check Merchant option)

The following QuickBooks Enterprise functions must be performed in single-user mode:

  • Condensing, converting, rebuilding, restoring, or updating the company data file.
  • Changing company information.
  • Setting up or changing company preferences.
  • Importing or exporting data.
  • Merging, deleting, or resorting list items.
  • Changing list item fields that interact with other lists.
  • Signing up for a QuickBooks Payroll Service.
  • Printing Form 1099-MISC.
  • Mapping a network drive from within QuickBooks.
  • Defining custom fields.
  • Linking to QuickBooks from TurboTax.

You will want to make certain that just as soon as you are finished with any task requiring single-user mode, that you switch back to multi-user mode and then notify other users they can return to work in the Company file.  Note, if your business uses multiple QuickBooks Company using Single-user mode in any one company file does NOT preclude the use of multi-user mode in any other Company file.

Multiple Company Instances

QuickBooks Enterprise also offers something called ‘multiple company instances’. You can actually have two different Company files open at the same time on the same computer using this feature. The initial company you open is referred to as the primary instance (or Primary Company) and the 2nd company you open is referred to as the secondary instance (or Secondary Company).  Both company files can be in either Single-user or Multi-user mode (or a combination thereof).

While you can do most things that you normally can do with only a single Company file open when using the Primary Company, there are some limitations shown in the table below:

You also can NOT do the things in the above list in the Secondary Company either when both a Primary and Secondary Company file are open.

In addition to the limitations shown above, there are additional limitations on the tasks that can be performed when using the Secondary Company. 

In addition, the same single-user restrictions/requirements apply for either the Primary or Secondary Company when a Secondary Company is open.

Switching Between Company Files

If you work with several companies, you’ll be working with multiple QuickBooks company files. You can change from one company file to another at any time. QuickBooks provides an easy way to find and open a company file that you’ve worked with before.

To Open a Previously Opened Company file:

1) From the File menu, choose Open Previous Company.

2) From the sub-menu, select the company file you want to open.

Exiting QuickBooks

Unlike most other Windows programs, QuickBooks doesn’t require you to save your data while closing the program. QuickBooks also does not require you to 'summary post' your data to the general ledger as part of any end of day, or end of use session. QuickBooks automatically saves your data while you’re working within your Company file (after every transaction is created, changed or deleted) and every time you close the Company file.

  • To exit QuickBooks, click on the File menu, and select the option to Exit.

Best Practice: Close all of your open windows in QuickBooks, then close your Company file before exiting QuickBooks.

Why QuickBooks is like frying chicken

Would you walk away from your stove-top and head outside for a 15-minute smoke break while you have chicken frying?  I would hope not!  So don't think of QuickBooks any differently. Don't get up from your desk and head out to take a smoke break, a bathroom break, or even a quick trip to the coffee maker, and leave QuickBooks open on your workstation.  This goes doubly so if you are in the middle of a transaction, like creating an Invoice.  Finish your work, or save it without finishing, then return to it after you come back. Make sure to Exit QuickBooks properly.  Don't leave the chicken frying on the stove unattended, or you may return to find your QuickBooks 'up in flames'.

Backing Up Your Company file

There is no better safeguard for your QuickBooks Company file then a good backup routine. Even if you have your Company file located on a server computer, and that server is backed up every night 'off-site', making an 'internal QuickBooks Backup' is still a 'Best Practice.' 

One of the best ways to accomplish this is using the QuickBooks 'Automatic' Backup feature. You have the option to automatically Backup your data every (designated number) of times you exit your Company file (shown below).

Another alternative is simply a 'reminder' for you to backup when you are in the process of closing the Company file after a certain number of times (shown below). 

By default, QuickBooks is set to remind you to backup while you are closing your Company file ever four (4) times.

With this said, backing up in a multi-user environment can slow-down QuickBooks for users who are still working; therefore, I normally recommend, when there are numerous QuickBooks users in a business, that the primary user, or QuickBooks Administrator, perform a manual backup at the close of the day's business, and that other users have these reminders and/or automatic/scheduled backups turned-off on their workstations.