'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:
- specialist cash and carries
- suppliers from whom you make one-off or infrequent purchases
- online suppliers of items like footwear accessories who require payment when the order is placed
Cash purchases only include items that you buy for resale. 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 safely all the invoices and receipts for Cash purchases, even if the amounts are small.