'Cash purchases' are any payments you make to suppliers who you don't have an account with - so you have to pay for the goods when you buy them. These might include:
- your local cash and carry - most don't offer account facilities, even to regular customers
- local retailers and market stall holders - perhaps even supermarkets
- other suppliers from whom you buy goods very infrequently - perhaps because your main supplier is out of stock or because you've run out of something and need an emergency top-up
Cash purchases only include items that you buy for resale. They don't include things like cleaning materials or business stationery.
Remember to keep any invoices and receipts for Cash purchases safely, even if they are for small amounts.