Millions of entrepreneurs use QuickBooks, a premier accounting application, to streamline their business financial operations. The innovative software has advanced accounting tools/ features. You need to install the on-premise desktop edition on your system to reap its benefits. However, while installing QuickBooks on your system, you might fall into various installation errors, such as QuickBooks installation Error 1603. The error also occurs at the time of updating the software. Normally, the error occurs due to the corrupted/damaged Microsoft .Net Framework. An error message becomes visible on the screen, stating, “Error 1603: The update installer has encountered an internal error”. Read the blog till the end to learn more about the installation/update error.

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Causes Provoking QuickBooks Update Error 1603

You might face QuickBooks Update Error 1603 due to any of the reasons listed below.

1.The QuickBooks company file that you are trying to access is locked.
2.Improper installation of Microsoft .Net 1.1 SP1 will result in the problem.
3.QuickBooks installation gone wrong.
4.Microsoft C ++ & MSXML components are damaged or corrupted.
5.You are still using outdated versions of software and Windows.
6.The Windows temporary folder is filled with junk files and caches.

Easy Troubleshooting Methods to Resolve QuickBooks Error 1603

Facing the error 1603 when you install QuickBooks Desktop is quite common. There are a couple of solutions that will help you in resolving the installation/update error. Let us have a quick look at each solution of the 1603 error.

Action 1: Repair Microsoft .Net Framework

1.Open the Control Panel of your system and choose the Programs option.
2.Further, pick the Programs and Features tab and look for the Microsoft Framework folder.
3.Right-click on the Microsoft folder and choose repair a program option from the drop-down list.
4.Go with the on-screen instructions to complete the repair task.
5.Restart the system when the repairing task is over.

Action 2: Utilize Install Diagnostic Tool from QuickBooks Tool Hub

1- To begin with, download and install the most recent version of QuickBooks.
2 – Open the QuickBooks tool by double-clicking on its installation folder.
3 – Now, choose the Installation issues tab and then click on the QuickBooks install diagnostic tool button.
4 – Allow the tool to run. It will take around 20 minutes to diagnose the problem.
5 – The detected problems will be fixed automatically.

Action 3: Fix the damaged MSXML 4.0 Component From Your End

1.Insert the QuickBooks CD and close the installation window.
2.Now, tap the start button in Windows 7 or Vista.
3.In the search bar, type exe /fvaum ‘D:QBOOKSmsxml.msi in the search bar and press the enter key.

Action 4: Update Windows to the Latest Release

1.To begin with, tap the start menu and then choose the settings option.
2.Further, choose the Windows update option and click on check for updates to know the latest updates available for Windows.
3.In case updates are available, you can click to install them on your system.


Millions of SMEs trust QuickBooks to accomplish their accounting tasks. The sophisticated tools simplify complex business financial tasks. However, you might face various technical discrepancies at the time of installing the software, such as QuickBooks error code 1603. Hopefully, this blog helps you in fixing the update/install issue easily. You can call our experts immediately in case you need further advice from an expert.

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