QuickBooks is one of the most reliable accounting software programs used by small and medium-sized businesses. However, like any software, it can occasionally run into technical errors. One such issue is QuickBooks Error 12038, which typically occurs during software or payroll updates. This error indicates that QuickBooks is unable to connect to the internet securely due to network or configuration issues. Let’s take a closer look at what causes this error and how you can fix it quickly.
QuickBooks Error 12038 is a network-related error that appears when the software cannot establish a secure connection with Intuit’s servers. It usually shows up with a message such as:
“Error 12038: QuickBooks cannot complete this update.”
This error is most common when downloading payroll or product updates, and it can occur on both single-user and multi-user setups.
Several factors can trigger this error, including:
Incorrect Internet or SSL settings
Weak or unstable internet connection
Firewall or antivirus blocking QuickBooks updates
Outdated Internet Explorer settings
Multiple versions of QuickBooks running simultaneously
Understanding these causes can help you pinpoint the problem and choose the right fix.
1. Check Your Internet Connection
Start by ensuring that your internet connection is stable. Try opening a few websites in your browser to verify that the internet is working correctly. If the connection drops frequently, restart your modem or router.
2. Configure Internet Explorer Settings
QuickBooks uses Internet Explorer for secure connections.
Open Internet Explorer.
Go to Tools → Internet Options → Connections → LAN Settings.
Make sure Automatically Detect Settings is checked and no proxy server is selected (unless required).
Then, go to the Advanced tab and ensure Use SSL 2.0 and Use SSL 3.0 are checked.
Click Apply and OK to save the changes.
3. Verify QuickBooks Internet Connection Settings
Open QuickBooks.
Go to Help → Internet Connection Setup.
Choose Use my computer’s Internet connection settings to establish a connection.
Click Next → Done.
Then, try updating QuickBooks again.
4. Temporarily Disable Firewall or Antivirus Software
Sometimes, your security software can block QuickBooks from connecting to Intuit servers. Temporarily disable your firewall or antivirus and try updating again. If it works, add QuickBooks as an exception in your security program.
5. Update QuickBooks Manually
If automatic updates fail, you can download the latest QuickBooks update directly from Intuit’s website and install it manually.
6. Run QuickBooks as Administrator
Right-click on the QuickBooks icon and select Run as Administrator. This gives the software permission to access network resources properly.
QuickBooks Error 12038 can disrupt your workflow, especially during crucial payroll or software updates. Thankfully, the issue is often caused by internet or SSL configuration problems and can be resolved using the steps above. Ensuring your system and QuickBooks settings are up to date will help prevent this error in the future.