Industry sector: Retail and wholesale

Art shop: Cash purchases

'Cash purchases' means any payments you make to suppliers with whom you do not have an account. As you don't have an account, you will have to pay for the goods at the time when you buy them.

Examples of the types of supplier from whom you might make Cash purchases include:

  • suppliers from whom you make one-off or infrequent purchases
  • suppliers with whom your account status is pending approval
  • specialist cash and carries
  • web-based suppliers such as professional eBay wholesale traders who don't offer credit terms

Cash purchases only include items that you buy for resale. They don't include things like tea and coffee bought for use at work, or items such as business stationery. Don't include things like this here. They're covered elsewhere in the cash flow.

Remember to keep safely any invoices and receipts for Cash purchases, even if the amounts are small.