Reports say Toowoomba businesses doing it tough
TOOWOOMBA businesses are resilient despite a report that more than 280 will face financial failure in the next 12 months.
Specialist accounting firm SV Partners' March 2016 Commercial Risk Outlook Report analysed more than 20 million financial records from various sources relating to Australia's 2.34 million operating businesses.
The report identified the sectors and geographical location of businesses most at risk of default during the next 12 months.
It revealed the Toowoomba businesses, which represent more than 2 per cent of operating businesses in the region, would fail to meet financial obligations.
The report also showed smaller businesses, with turnovers of less than $1 million, were the most at risk group across Toowoomba with 85 of those in the high financial risk category.
However, Toowoomba Chamber of Commerce president Joy Mingay said a little community support would go a long way when it came to small businesses.
"These figures are worrying but high risk doesn't necessarily mean they will fail," she said.
"There is always risk involved when establishing and running a business. It's important for Toowoomba businesses to have systems in place (SWOT analysis, etc) and seek the advice of professionals to ensure they can weather predicted tough times.
"It's also important as a community to support local business in good times and the bad, and stand by those experiencing tough times."
SV Partners executive director David Stimpson stressed advisors listen for signals of financial distress.
"To reduce financial risk, we advise businesses to be vigilant in accounts collection, closely monitor cash flow and make sure financial reporting gives a complete and up-to-date picture of their financial position," he said.