Free course
Understand Your Numbers
The numbers every business owner should understand, explained in plain English.
Eight short lessons take you from why profit isn't cash through to what a lender may look at, with worked examples from Australian small businesses.
The course is free, with no sign-up. Each lesson stands on its own, so you can start with the question you have today. It is general education, not accounting or tax advice: your accountant or registered tax agent can apply it to your business.
Start lesson 1 8 lessons · about 48 minutes · free, no sign-up
Last reviewed 26 Sept 2026
Course lessons
- 1Profit vs cash flow: why profit isn't cashProfit tells you whether your business earns more than it spends over a period. Cash is the money you can actually spend today. Timing differences mean the two can move in opposite directions.6 min read
- 2How to read a profit and loss statementA profit and loss statement lists your sales and expenses over a period and shows whether the business made a profit. Reading it top to bottom tells you how much each sale earns and where the money goes.6 min read
- 3How to read a balance sheetA balance sheet is a snapshot of what your business owns, what it owes and what is left for the owners on one date. It shows your financial position, where the profit and loss statement shows performance.6 min read
- 4Cash flow explained: timing, forecasting and gapsCash flow is the money moving in and out of your business. Tracking it, and forecasting it a few months ahead, shows you when cash will be tight so you can act before bills fall due.6 min read
- 5Debtors and creditors: what your receivables and payables tell youDebtors are customers who owe you money. Creditors are suppliers you owe. How quickly money moves through both decides how much of your profit is sitting in the bank and how much is tied up waiting.6 min read
- 6Working capital: why growing businesses often feel short of cashWorking capital is current assets minus current liabilities. As sales grow, more cash gets tied up in stock and unpaid invoices before it comes back, so a growing business can feel poorer even as profit rises.6 min read
- 7Margins and break-even: how pricing and costs drive your profitYour margins show how much of each sales dollar you keep. Your break-even point shows how much you need to sell before you make any profit. Together they explain how prices and costs drive profitability.6 min read
- 8What lenders may look at in your numbersWhen you apply for business finance, a lender may look at your revenue, cash flow, profit, bank statements, financial statements, BAS, existing debts, credit information and security. Each lender weighs these differently, so understanding your own numbers comes first.6 min read
This course is general education about business numbers. It is not accounting, tax or financial advice, and it does not tell you whether you qualify for finance. Find an accountant or adviser to apply it to your business.