BDO Stoy Hayward has highlighted poor financial control as one of the key reasons for business failure at a seminar hosted in partnership with R3, the Association of Business Recovery Professionals.

The firm highlighted the this issue as part of its ‘Top Ten’ reasons for failure, which also included inadequate response to increasing competition, inability to react quickly to changes in the market-place as well as failure to tune into the needs of the customer.

Mike Prangley, partner, BDO Stoy Hayward, said: ‘When it comes to the crunch – most struggling retailers fail to realise that cash is "King". It’s lack of cash not lack of profit that causes many businesses to fail.’

’Key 'cash crunch points' include quarterly rent payments, honouring wages & salaries as well as looming VAT and PAYE payment dates,’ he added.