How to Fix QuickBooks Error 1327: A Complete Guide

QuickBooks is a popular accounting software used by millions of small businesses. However, like any software, QuickBooks can sometimes run into errors that prevent you from using the program properly. One common error is QuickBooks Error 1327, which typically occurs when trying to open a company file.

Don’t worry – in most cases, Error 1327 can be easily fixed by following the troubleshooting steps outlined in this guide. We’ll walk you through how to diagnose the problem, repair your QuickBooks installation, and open your company file so you can get back to work.

QuickBooks Error 1327

What Causes Error 1327 in QuickBooks?

Error 1327 indicates that QuickBooks cannot initialize the license manager service on your computer. This service verifies that you have a valid license to use QuickBooks.

There are a few common reasons why you might encounter this error:

  • Corrupted license manager files: The license manager files that QuickBooks relies on have become corrupted. This prevents QuickBooks from verifying the license properly.
  • Conflicting applications: Sometimes, other programs on your computer can conflict with the QuickBooks licensing system and cause Error 1327.
  • Outdated QuickBooks version: Using an outdated version of QuickBooks can sometimes lead to problems initializing the license manager.
  • Damaged company file: In rare cases, damage to the company file itself results in Error 1327 appearing when trying to open it.

So, in most cases, Error 1327 is not caused by a problem with your actual QuickBooks license but rather an issue initializing the licensing verification system. The good news is this can usually be fixed relatively easily.

Step 1: Restart Your Computer

The first step in troubleshooting Error 1327 is to restart your computer. Often, a simple reboot will clear up any temporary glitches that were preventing the license manager from starting properly.

Close out of all programs and go to the Start menu > Shut down or sign out > Restart.

Once your system has fully restarted, try opening QuickBooks again. Sometimes, Error 1327 will be resolved after a restart.

If the error still appears, move on to the next steps.

Step 2: Reinstall or Update the License Manager

If a corrupted license manager is causing problems, reinstalling or updating it can often fix Error 1327.

To reinstall the QuickBooks License Manager:

  1. Close QuickBooks on your computer.
  2. Open the Windows Control Panel.
  3. Click “Uninstall a program” or “Add/remove programs,” depending on your Windows version.
  4. Select QuickBooks from the list and click Uninstall/Change.
  5. In the uninstall wizard, choose the option to repair QuickBooks. This will reinstall the license manager files without removing your QuickBooks program or data.

Alternatively, you can update the License Manager through QuickBooks. To do this:

  1. Open QuickBooks and go to the Help menu.
  2. Select Update QuickBooks.
  3. On the update screen, select License Manager and click Update.

In most cases, reinstalling or updating the License Manager will resolve Error 1327 so QuickBooks can initialize properly.

Step 3: Rename the License Manager Folder

If reinstalling the License Manager does not work, another option is to rename the License Manager folder so QuickBooks generates a new one.

To do this:

  1. Browse to C:\ProgramData\Intuit\License Manager in Windows Explorer.
  2. Rename the “License Manager” folder to something like “License Manager Old”.
  3. Open QuickBooks and try to recreate your company file.
  4. QuickBooks should generate a new license manager folder with clean files.
  5. You can then attempt to open your company file again.

By forcing QuickBooks to generate a new license folder, you often resolve any corruption issues that were preventing the license verification from working properly.

Step 4: Run QuickBooks Database Server Manager

The QuickBooks Database Server Manager can diagnose and fix a number of issues with company files. It’s a good troubleshooting step for Error 1327.

To use it:

  1. Close QuickBooks.
  2. Open the Windows Start menu and search for “QuickBooks Database Server Manager.”
  3. Select your company file and click Diagnose and Repair.
  4. The Database Server Manager will check your File for errors and optimize the File.
  5. After it completes, restart QuickBooks and try opening your company file again.

Any errors fixed by the Database Server Manager can help resolve license initialization issues that were causing Error 1327.

Step 5: Rebuild Your Company File

If all else fails, rebuilding your QuickBooks company file from scratch can often resolve persistent Error 1327 issues.

Important: Rebuilding will remove all customizations from your File. Only use this step as a last resort.

Here’s how to rebuild your company file:

  1. Back up your QuickBooks file so you have a copy.
  2. Create a new, blank company file with the same name as your original.
  3. Install any QuickBooks updates so the new File is up-to-date.
  4. Open the new, blank company file you created.
  5. Go to File> Utilities > Copy Company File.
  6. Follow the prompts to copy your data from the backup into the new File.
  7. After the copy finishes, open the newly rebuilt company file. Error 1327 should now be resolved.

Rebuilding the File eliminates any corrupted data or customizations that may be preventing the license manager from initializing correctly.

Preventing QuickBooks Error 1327 in the Future

To avoid dealing with Error 1327 again in the future, here are some tips:

  • Keep QuickBooks updated to the latest version
  • Limit customizations and add-ons that modify your company file
  • Always backup your data before installing updates or making changes
  • Use the File Doctor tool regularly to optimize your company file
  • Maintain your QuickBooks license and check for updates

Following best practices in managing your QuickBooks data can eliminate many conditions that cause Error 1327. But if it happens again, use the steps outlined in this guide to get your company file opening properly once more.

When to Call QuickBooks Support

If you still cannot resolve Error 1327 after trying all the troubleshooting steps, it’s time to call Intuit QuickBooks support:

  • QuickBooks for Desktop: Call (888) 656-2102
  • QuickBooks Online: Call (888) 656-2102

Explain the error you are receiving and the troubleshooting steps you’ve taken. The support team can provide specialized tools and guidance for repairing Error 1327. This may include performing a deep scan of your company file to identify and fix corruption issues.

With the right help from QuickBooks experts, Error 1327 can usually be resolved to restore full access to your accounting software and data.


Error 1327 during QuickBooks startup is frustrating but typically feasible to fix. By reinstalling the License Manager, using the Database Server Manager, or rebuilding your company file, you can troubleshoot the error and open QuickBooks again. Prevent future issues by keeping your software updated and following best practices. Call Intuit support if needed for extra help repairing persistent Error 1327 problems.

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All List of QuickBooks Error Codes and Their Solutions