'Cash purchases' means any payment 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 who you might make Cash purchases from include:
- suppliers that you use for one-off or infrequent purchases - for example, spare parts or occasional repairs
- cash and carries for purchases of drinks, snack items and so on
Although many of your machine suppliers (both new and secondhand) may want cash with order or cash on delivery where you buy a machine outright, this type of payment is referred to as Capital expenditure rather than Cash purchases.
Remember to keep safely all the invoices and receipts for Cash purchases, even if the amounts are small.