Applicable fixes to resolve QuickBooks Error 40001

Applicable fixes to resolve QuickBooks Error 40001
4 min read

Punctual Payroll is crucial for any organization to boost employee morale, therefore enhancing the productivity of the business. QuickBooks ensures this by managing the employee records and automatically releasing the wages on the assigned day by the owner. The wages can be granted through paychecks or directly transferred to the employees' bank accounts. Unfortunately, some users bump into QuickBooks Error 40001 while activating the direct deposit in the software. If you are also unable to turn on the direct deposits due to this error, stick to this blog till the end to find out the reasons it develops and the methods that’ll help tackle it.

Prevent your QuickBooks from these payroll issues with the assistance of a QB expert available at 1-855-856-0042.

About the issue

This error will pop up when you try to activate the direct deposit in the software. It may be due to some damaged files in your data or restrictions from the firewall active on your computer. You are in trouble with this error due to some incorrect settings or minor issues in the software that can be removed easily. Until you fix the error, you won’t be able to resume the Direct Deposit activation process and will be returned with an error message by the software.

Recommended to read: How to fix QuickBooks Connection has been lost


The most probable reasons for the occurrence of this error are mentioned below-

  • The company file you are using has been damaged due to a malware attack or data corruption in your hard drive.
  • The version of QuickBooks you use is outdated and raises compatibility issues.
  • Some Program files of QuickBooks are missing or corrupted due to improper software installation on your PC last time.


The methods given below should be used to eliminate this error from QuickBooks-

Solution 1- Use the Verify Rebuild Utility

If there’s damage in your data, then it can be the sole reason for many errors in QuickBooks, this error being of them. The software will develop an error immediately when it fetches a file required during the activation and can’t process it due to its unsupported format. Follow the steps given below to repair your data using the Verify-Rebuild utility-

  1. Open QuickBooks Desktop on your PC and click on the tab that says File.
  2. Select Utilities from the option and choose Rebuild data.
  3. Click Ok in the following Window to create a backup of your data.
  4. Wait for the rebuild process, then go to Utilities again.
  5. Click on Verify Dataand wait for the process to finish.
  6. If the data has no issues, then you are good to go, but if you see the message ‘Your data has lost integrity,’ click Rebuild Now.
  7. Wait for the process to finish and retry activating the direct deposit.

If you still see the error popping up on your screen, try the next method.

Solution 2- Run QuickBooks as an Administrator

Using QuickBooks in Admin mode gives it special rights and prevents the software from getting blocked. Follow the steps given below-

  1. Search ‘QuickBooks’ in the search panel.
  2. Right-click on the QuickBooks icon and select Run as Administrator.

You will face no issues in activating the direct deposit now.


These are all the details you need to know about QuickBooks Error 40001. The possible reasons for this error to occur are described in the blog, along with the techniques to fix it. We hope the error was fixed after using the methods and your QuickBooks is error free now.

For any remaining doubts, call 1-855-856-0042 and consult a QB ProAdvisor expert for clarification.

Also read: User actions needed to fix QuickBooks Event ID 4 error


Allan Ramsay 2
Hi, I am Allan Ramsay, a professional Data recovery Engineer, working with Quickbooks Pro Advisors as a consultant from the past five years in the USA. I am a s...
In case you have found a mistake in the text, please send a message to the author by selecting the mistake and pressing Ctrl-Enter.
Comments (0)

    No comments yet

You must be logged in to comment.

Sign In / Sign Up