When Sage has been updated (change of version) make sure to update the driver that this process is using too
Check you have the latest SQL Server ODBC driver available
Check you have the correct Sage driver for the version you have
Check all credentials are correct:
Use them in SQL Server and Sage to make sure they are working correctly
Check the error log file in the directory for more information.
Please take a look at the following sections for more information:
Microsoft SQL Server Express Installation
Setting up the Sage ODBC connections (adding a company)
Setting up the connection details (Sage 50 & SQL Server)