QuickBooks Error H505: Troubleshooting Steps to Fix Multi-User Hosting Issues

QuickBooks Error H505 is a common error that users may encounter when trying to switch to multi-user mode or access a QuickBooks company file on a network. This error occurs when QuickBooks Desktop is unable to establish a connection with the company file hosted on another computer. It typically indicates issues with network connectivity, firewall settings, or incorrect configuration of the QuickBooks hosting setup. In this comprehensive guide, we will provide detailed troubleshooting steps to fix QuickBooks Error H505 and ensure smooth multi-user access to your company file.

Before diving into the solutions, let’s briefly understand the causes of QuickBooks Error H505:

Causes of QuickBooks Error H505:

  1. Incorrect hosting configuration: If the computer hosting the QuickBooks company file is not properly set up as the hosting server, it can lead to Error H505.
  2. Firewall or security software blocking the connection: Sometimes, the firewall or security software installed on the computer may block the communication necessary for multi-user access, resulting in Error H505.
  3. Incorrect DNS settings: Improper configuration of the Domain Name System (DNS) settings on the server or workstation can prevent QuickBooks from connecting to the company file.
  4. Network connectivity issues: If there are problems with the network, such as a weak or unstable connection, it can cause Error H505.
  5. Damaged or incorrect .ND file: The Network Data (.ND) file, which stores network-related information, may be damaged or configured incorrectly, leading to the H505 error.

Now, let’s proceed to the troubleshooting steps to fix QuickBooks Error H505:

Step 1: Verify Hosting and Services

  1. Open QuickBooks on all computers.
  2. From the File menu, select Utilities, and ensure that the option “Host Multi-User Access” is available. If it shows “Stop Hosting Multi-User Access,” select it.
  3. Go to the Services tab and check if the QuickBooksDBXX service is running. Replace “XX” with the version of QuickBooks you are using (e.g., QuickBooksDB23 for QuickBooks Desktop 2023).
  4. Make sure that the service is set to Automatic Startup Type.
  5. Repeat these steps on all computers accessing the company file.

Step 2: Adjust Firewall and Security Settings

  1. Configure firewall settings to allow exceptions for QuickBooks programs and ports (e.g., 8019, 56728, and 55378-55382).
  2. Temporarily disable the antivirus and security software on the server and workstations to check if they are causing the Error H505. If the error disappears, adjust the settings of the security software accordingly.

Step 3: Create Inbound and Outbound Rules in Windows Firewall

  1. Press Windows + R on your keyboard to open the Run dialog box.
  2. Type “firewall.cpl” in the Run dialog box and press Enter. This will open the Windows Firewall settings.
  3. Click on “Advanced Settings” on the left-hand side.
  4. Right-click on “Inbound Rules” and select “New Rule.”
  5. Choose “Port” and click “Next.”
  6. Select “TCP” and enter the specific ports used by QuickBooks (e.g., 8019, 56728, and 55378-55382).
  7. Choose “Allow the connection” and click “Next.”
  8. Name the rule and click “Finish.”
  9. Repeat the steps for “Outbound Rules.”

Step 4: Configure Hosts File

  1. Open the Windows Hosts file on the computer hosting the company file. The path is usually “C:\Windows\System32\Drivers\Etc\hosts.”
  2. Open the Hosts file using Notepad (Run as Administrator).
  3. Add the IP address and name of each computer on the network that needs access to the company file.
  4. Save the changes and close Notepad.

Step 5: Create a New Folder for Company Files

  1. Create a new folder on the hosting computer and name it “QB Data.”
  2. Share the folder and set the appropriate Windows permissions to allow full access.
  3. Copy the QuickBooks company file (.QBW) to the new folder.

Step 6: Use QuickBooks Connection Diagnostic Tool

  1. Download and install the QuickBooks Connection Diagnostic Tool from the official Intuit website.
  2. Run the tool and follow the on-screen instructions to diagnose and fix network-related issues.
  3. After the tool completes the troubleshooting, restart the computers and check if the Error H505 is resolved.

Step 7: Recreate the .ND File

  1. On each workstation, locate the folder containing the QuickBooks company file.
  2. Find the corresponding .ND file with the same name as the company file.
  3. Right-click on the .ND file and select “Delete.”
  4. Open QuickBooks again on each workstation, and it will recreate the .ND file automatically.

Step 8: Use the QuickBooks Database Server Manager

  1. Install the QuickBooks Database Server Manager on the hosting computer if it is not already installed.
  2. Open the Database Server Manager and click on “Add Folder.”
  3. Browse to the folder containing the QuickBooks company file and click “OK.”
  4. Click “Scan” to start the scanning process.
  5. Once the scan completes, restart the computer and check if the Error H505 persists.

Step 9: Contact Technical Support If none of the above solutions resolve the Error H505, it is advisable to contact the official QuickBooks technical support team or consult with a certified QuickBooks professional for further assistance.


QuickBooks Error H505 can hinder multi-user access to your company file, impacting productivity and workflow. By following the troubleshooting steps outlined in this guide, you can effectively diagnose and fix the error. Ensure that hosting and services are properly configured, adjust firewall and security settings, create inbound and outbound rules in Windows Firewall, configure the Hosts file, create a new folder for company files, use the QuickBooks Connection Diagnostic Tool, recreate the .ND file, and utilize the QuickBooks Database Server Manager. If the error persists, it is recommended to seek support from the official QuickBooks technical team or consult with a certified QuickBooks professional for further assistance.

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