Cash Receipts And Disbursements Cash receipts and disbursements method Report income for the tax year in which payments are received Expenses deducted in the year paid Most individuals and many service businesses use the cash methodCash Receipts And Disbursements • Cash receipts and disbursements method – Report income for the tax year in which payments are received – Expenses deducted in the year paid – Most individuals and many service businesses use the cash method