'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 from whom you might make Cash purchases include:
- cash and carries that don't offer account facilities . You may decide to always buy some or all of your food and drink from cash and carries or you may only use them if your stocks run unexpectedly low and need to be replenished. Some online suppliers also require you to pay at the time you make a purchase
- suppliers that you use only from time to time
Cash purchases only include items that you buy for resale. They don't include things like tea, coffee and food that's consumed at work by you and your staff, or items such as business stationery.
Remember to keep safely all the invoices and receipts for Cash purchases, even if the amounts are small.