Hello Alvis Welcome to Community, Are you facing a frustrating issue with QuickBooks not allowing you to backup your company file, with the error message stating, “Backup Failed: QuickBooks was unable to backup your company file. A disk image could not be created by QuickBooks.” This can indeed be a perplexing problem, but there are several potential solutions you can try to resolve it.

Here are some steps you can take to troubleshoot and hopefully fix this issue:

1. Check available disk space: Ensure that you have enough free space on your hard drive to create the backup. QuickBooks may fail to create a backup if there isn’t sufficient space available.
2. Run QuickBooks as Administrator: Try running QuickBooks with administrative privileges. Right-click on the QuickBooks shortcut icon and select “Run as administrator.” Sometimes, this can resolve permissions-related issues that might be causing the backup failure.
3. Verify the company file: Use the QuickBooks File Doctor tool to verify and repair any issues with your company file. This tool can help identify and fix data corruption or other problems that may be preventing the backup process.
4. Check for software updates: Make sure you’re using the latest version of QuickBooks. Sometimes, updating to the latest version can resolve bugs or compatibility issues that may be causing backup failures.
5. Disable antivirus/firewall temporarily: Your antivirus or firewall software might be blocking QuickBooks from creating the backup. Try temporarily disabling these security programs and then attempt to create the backup again to see if it resolves the issue.
6. Create a portable company file: Instead of creating a regular backup, try creating a portable company file (.qbm). This file format is more compact and may be less prone to errors during the backup process. Once created, you can restore the portable file to a regular company file format if needed.
7. Contact QuickBooks support: If none of the above solutions work, it may be time to reach out to QuickBooks support for assistance. They can provide further guidance and help troubleshoot the issue based on your specific circumstances.

By following these steps, you should hopefully be able to resolve the issue and successfully backup your QuickBooks company file. Remember to always backup your data regularly to prevent loss in case of unexpected issues like this one.