'Cash purchases' means any payments you make to suppliers with whom you don't 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:
- cash and carries - many of these do not offer credit
- manufacturers or wholesalers from whom you make one-off or infrequent purchases
Cash purchases only include items that you buy for resale. They don't include things like cleaning materials, or items such as business stationery.
Remember to keep any invoices and receipts for Cash purchases safely, even if the amounts are small.