A Cash Basis Income Statement is a summary of the financial performance of an organization over a given period of time, typically a year. This statement takes into account the funds that have actually been received during the period, as opposed to accrual basis statements that recognize income when invoices are issued or services are performed, regardless of whether cash has been received. The Cash Basis Income Statement is often used by small businesses and entrepreneurs as it gives them an understanding of how much actual cash they have taken in over a certain period of time. It helps them to manage their cash flow more effectively and make decisions about where to allocate resources accordingly.