'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
- non-traditional suppliers - for example someone who has a quantity of suitable materials (possibly hardwood timber from a fallen tree) which they want to sell
- online suppliers who don't offer credit terms - for example professional eBay traders
- cash and carries
Cash purchases only include items that you buy for use in your furniture making processes. They don't include things like tea and coffee bought for use at work, or items such as business stationery. Don't include things like this here. They're covered elsewhere in the cash flow.
Remember to keep any invoices and receipts for Cash purchases safely, even if the amounts are small.