'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:
- suppliers from whom you make one-off or infrequent purchases, such as local supermarkets (some caterers find it quite convenient to buy supplies from a supermarket on a regular basis)
- suppliers that do not offer terms
Cash purchases only include items that you buy for resale. They don't include things like tea and coffee bought for consumption by you and your staff at work, or items such as business stationery.
Remember to keep any invoices and receipts for Cash purchases safely, even if the amounts are only small.