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Step 1: Check the Location of QuickBooks Company File

You can get “The file you specified cannot be opened” error in QuickBooks if the company file is stored in a read-only folder. You can move the file to another location and check if it resolves the error.

Step 2: Check the File Extension

You’re not able to open the company file if the file extension is not compatible. So, check and make sure that the file extension is .qbw, .qbx, or .qbb.

Step 3: Run Your QuickBooks as an Administrator

You can get the “The file you specified cannot be opened” error when trying to run payroll update without administrator permission. To download the updates, you should run QuickBooks in Administrator mode.
To do so, follow these steps:

1. Go to the Windows Start option.
2. Enter QuickBooks into the search field.
3. Now right-click on the desired QuickBooks version you need to open.
4. Click Run as Administrator.
5. Run the payroll update.
6. After the updates are complete, close the QuickBooks.

Step 4: Download QuickBooks Updates

You can get “The file you specified cannot be opened” error if your QuickBooks version is outdated. If this is the case, download the latest updates.
To do so, follow these steps:

1. Open your QuickBooks application.
2. Press F2 to open the Product Information window.
3. Check the QuickBooks version that you are using.
4. Locate Help and then click Update QuickBooks Desktop.
5. Click on the Update Now button and then click Get Updates.
6. Once the update is complete, you will get a notification to install the update.
7. Click Yes and then follow the on-screen instructions to complete the installation process.
8. Next, restart the QuickBooks application.

Step 5: Check Permissions of the QuickBooks Program File

You can check and update the permissions by using the below steps:

1. Go to the Windows Start button.
2. Enter File Explorer in the search field.
3. Press the Enter key.
4. In the File Explorer window, search QuickBooks program file (QBW32.EXE).
5. Right-click on the file and click Properties.
6. Click Security and then select Edit.
7. Click Add.
8. In the Search field, write Everyone and then click OK.
9. In the Security window, choose the checkbox for Full Control and then click OK.
10. Click on Add.
11. In the new window, enter Users and then click OK.
12. In the Security Wizard, click the checkbox for Full control and then click OK.
13. Click Apply and then click OK.

Step 6: Repair the Company File

You may encounter “The file you specified cannot be opened” error in QuickBooks if the company file gets corrupted. In such a case, you can run the Quick Fix My File tool.
To use this tool, follow these steps:

1. First, download and install QuickBooks Tool Hub.
2. In the tool hub, click Company File Issues.
3. Click Quick Fix My File.
4. Once the tool completes the process, click OK.

If the error persists, then you can run QuickBooks File Doctor using the following steps:

1. From the tool hub, click Company File Issues.
2. Run QuickBooks File Doctor.
3. In the dashboard of the File Doctor tool, click on the dropdown menu to choose the company file.
4. Click on Check your file and then click on Continue.
5. The QuickBooks will display a prompt asking you to enter the Admin credentials.
6. Click Next.

If the QuickBooks built-in repair tools fail to repair your company file, then you can consider using a third-party , such as Stellar Repair for QuickBooks.

It is an advanced tool that is designed to repair corrupt QuickBooks company (QBW) files. The tool has advanced recovery features that help you fix common corruption-related errors in QuickBooks.

Also, it has a preview feature to see the repaired data before saving it. It has a user-friendly interface that makes it easy to perform the repair process even for non-technical users.