The QuickBooks Database Server Manager (QBDBSM) plays a vital role in hosting and sharing your company files across multiple systems. It ensures that every user connected in multi-user mode can access the company file simultaneously without data conflicts.

However, when something goes wrong with the Database Server Manager, it can break this communication link — resulting in connection or startup errors like Error 80040408.

Here are the most common database-related causes behind this issue:

1. Database Server Manager Service (QBDBMgrN) Not Running

If the QuickBooksDBXX service (where XX denotes your version, e.g., QBDBMgrN27 for 2017, QBDBMgrN35 for 2025) isn’t running, QuickBooks cannot connect to the hosted company files.

This is one of the most frequent triggers of Error 80040408.

2. Damaged or Outdated Database Server Installation

A corrupted or outdated installation of QuickBooks Database Server Manager can prevent it from scanning folders or creating network data files (.ND), resulting in failed connections.

3. Incorrect Firewall or Port Configuration

QuickBooks uses specific network ports for communication. If Windows Firewall or antivirus software blocks these ports, the Database Server Manager cannot connect with the workstations or the company file.

4. Corrupted .ND (Network Data) File

The .ND file helps QuickBooks track the location and connection settings of your company file.

If this file becomes damaged, QuickBooks fails to recognize the company file path and triggers Error 80040408.

5. Misconfigured Hosting Settings

If multiple systems attempt to host the same company file or if hosting is disabled on the main server, QuickBooks can’t establish a stable connection.

Steps to Fix QuickBooks Database Server Manager Issues

Follow these troubleshooting steps to fix Database Server Manager-related problems that cause QuickBooks Error 80040408.

Step 1: Check the Status of the Database Server Manager Service

1. Press Windows + R, type msc, and hit Enter.
2. Scroll down and locate QuickBooksDBXX (e.g., QuickBooksDB35).
3. Right-click → Select Properties.
4. Ensure the Startup type is set to Automatic.
5. If the Service Status shows Stopped, click Start.
6. Click Apply → OK to save the settings.

Once the service is running, try opening QuickBooks again.

Step 2: Re-Scan Company Files Using Database Server Manager

Re-scanning helps QuickBooks detect company files and rebuilds the network configuration.

Steps:

1. On your server computer, open QuickBooks Database Server Manager.
2. Click Browse, select the folder where your company file (.QBW) is stored.
3. Click Start Scan.
4. Wait for the scan to complete — this process will recreate missing or corrupted .ND
5. When done, open QuickBooks again from your workstation.

If the company file opens without an error, the problem is resolved.

Step 3: Reinstall QuickBooks Database Server Manager

If scanning doesn’t work, your Database Server installation might be damaged.

Steps:

1. Press Windows + R, type cpl, and press Enter.
2. Locate QuickBooks Database Server Manager → click Uninstall/Change.
3. Follow the on-screen prompts to remove the application.
4. Reboot your computer.
5. Download the latest version of QuickBooks Database Server Manager from Intuit’s official website.
6. Install it and restart your server.

Once installed, open Database Server Manager and re-scan your company file folders again.

Step 4: Configure Windows Firewall Ports for Database Server Manager

Firewalls may block the ports required by QuickBooks Database Server Manager to communicate with the network.

Steps:

1. Open Windows Defender Firewall → Advanced Settings.
2. Click Inbound Rules → New Rule → Port.
3. Enter the QuickBooks ports for your version:
   • For QuickBooks 2024: 8019, 56728, 55378–55382
4. Select Allow the Connection → click Next → Finish.
5. Repeat the same for Outbound Rules.
6. Restart your computer once finished.

Step 5: Verify Hosting Settings

Only the server system should host the company file.

On Workstations:

1. Open QuickBooks → File → Utilities.
2. If you see “Stop Hosting Multi-User Access”, click it to disable hosting.

On the Server:

1. Open QuickBooks → File → Utilities.
2. Make sure “Host Multi-User Access” is enabled.

This ensures that only the main server hosts the company file.

Step 6: Rename Damaged .ND and .TLG Files

If your .ND or .TLG files are damaged, QuickBooks won’t connect properly.

Steps:

1. Navigate to the folder containing your company file.
2. Find the files ending with .ND and .TLG.

Example:

• qbw.nd
• qbw.tlg

3. Right-click each → Rename → Add .old at the end.
4. Open QuickBooks again.

(New .ND and .TLG files will be created automatically.)