Company file size too big

Hi there, lilavalv.

Thank you for contacting us and trying to troubleshoot the error PS038 and the performance of your QuickBooks Desktop (QBDT) account.

The PS038 error code occurs due to corrupted/damaged payroll data in the QuickBooks company file. To fix this, I suggest you update your QuickBooks to the latest release. Here are the steps you need to follow:

1. In your company file, go to the Help menu at the top bar.
2. Choose Update QuickBooks Desktop.
3. Select the Update Now tab.
4. Click the Reset Update box to remove previously downloaded releases.
5. Choose the Get Updates button and press OK to continue.
6. Next, close and reopen your QuickBooks to kick off the installation.

Once you've updated your QuickBooks, create a backup copy of your QuickBooks Desktop company file. Then, follow Step 2 in this article: Resolve payroll error PS038.

As for your concern about your company file size being too big and affecting the performance of your QBDT account, you can run the Condense Data utility or start a new company file.

To help you manage your company files in QBDT and fix performance issues, check out this article: Manage your data files to fix QuickBooks Desktop performance issues.

If you have any other concerns or questions about your company file, feel free to leave a comment. I am always here to assist you. Have a great day!

@lilavalv 

Why don't you consider to condense your file?

Because we don't want to get rid of the previous years transactions. We want to still be able to have access to those and condensing data will remove/delete those. That's what I understood from what I read.

You will have 2 types of company files. You can open the condensed file and original file at the same time.

-When I click reset update and choose updates, it doesn't go through and tells me update "Failed.

-To resolve PS038 error had to take the file out of the network (which took 1 hour to download only) then verify/rebuilt twice even then there were still some errors showing up. Had to manually fix all the corrupted transactions. We were able to get code PSXX (Can't remember what it was) but PS038 is now back again? 

-Condensing will delete previous years transactions which the owner does not want to get rid of. Is there another option? 

@lilavalv 

It seems your file is corrupted. If you run the Condense Data utility, the process will most likely fail. Don't wait until your file is completely damaged.

What do you recommend? I am trying to figure out what my options are. 

The cheapest option is to create a new company file. Otherwise, purchase a third-party file repair service and file condense service.