From Longman Business Dictionarycash basisˈcash ˌbasis noun [singular]1ACCOUNTING a system of accounts in which the profit or loss for a particular period of time is based on the amounts of money received and paid out during that period, rather than on goods or services provided during that periodSome firms are allowed to pay VAT on a cash basis: VAT need only be paid when the invoice bearing VAT has actually been paid.2COMMERCE if you receive goods or services on a cash basis, you must pay for them as soon as you receive them rather than paying laterIf hotel guests have no credit cards they are asked to prepay for their stay on a cash basis.
