Accrual Basis Net Income is a measure of a company’s financial performance based on accounting rules. This number reflects the income and expenses for a given period regardless of whether payments have been made or received during that time. It includes all transactions, including sales, purchases, payment of expenses, investments in assets, etc. Accrual Basis Net Income is important to investors because it gives them an accurate picture of the company’s finances—allowing them to identify potential risks and make informed decisions.