Questions About Financial Analysis
Getting started with financial analysis can feel overwhelming. These are the real questions people ask us—and the honest answers that might help you too.
Updated January 2025
Most people think financial analysis is just about spreadsheets and formulas. But it's really about understanding what the numbers are trying to tell you—and what they're hiding. That's where things get interesting.
— Lachlan Fiorentino, Senior Analyst
Do I need a finance degree to understand this stuff?
Not even close. Most of the people we work with have backgrounds in engineering, hospitality, retail—all over the place. What matters is curiosity and a willingness to look past the surface. We've seen history majors become brilliant at spotting financial patterns because they know how to ask good questions. The degree helps, sure, but it's not the deciding factor.
How long before I can analyse my own business financials?
Depends on what you mean by "analyse." Reading a profit and loss statement? You could learn that in a weekend. Understanding why your margins dropped 3% last quarter and what to do about it? That's a different conversation. Most people start seeing useful patterns after about three months of regular practice. But you'll keep learning new angles for years—that's actually the fun part.
What's the most common mistake people make?
They focus on the wrong numbers. Revenue looks great, so they think everything's fine—meanwhile, their cash position is deteriorating and they don't notice until it's a crisis. Or they obsess over cutting costs when the real issue is pricing strategy. Financial analysis isn't about having all the data—it's about knowing which data actually matters for your situation.
Can this help with personal finances too?
Absolutely. The same principles apply whether you're analysing a corporation or your household budget. Understanding cash flow, identifying trends, making projections—these skills transfer directly. One of our clients said learning business analysis changed how she approached her mortgage refinancing. She could suddenly see what the bank was really offering versus what they said they were offering.
What software do I need to get started?
Honestly? A spreadsheet program and a calculator. Most powerful analysis happens with basic tools used intelligently. Once you understand the fundamentals, specialized software can speed things up—but it won't think for you. We've seen people create incredibly sophisticated models in plain Excel. The software matters less than understanding what you're trying to figure out.
Numbers Tell Stories
Every financial statement is basically a story about decisions that were made—and their consequences. When you learn to read that story, you stop being confused by your own business data.
Last month, someone showed us their financials convinced they had a sales problem. Ten minutes in, we could see it was actually an inventory management issue creating artificial scarcity. Different problem, completely different solution.
Is this relevant for small businesses?
Maybe more so than for large ones. When you're running a small operation, every decision hits harder. Understanding your financial position isn't optional—it's survival. Plus, you probably can't afford to hire a full-time analyst, so you need these skills yourself.
What if my numbers are a mess?
Then you're like most businesses. Clean data is a luxury, not a requirement. Part of financial analysis is working with imperfect information and still making sound decisions. We teach you how to identify what's reliable and what needs verification.
Can I do this part-time?
That's how most people start. You don't need to quit your job to learn financial analysis. An hour here and there adds up faster than you'd think. The key is consistency—regular practice with real scenarios beats intensive cramming every time.
What about Australian tax rules?
We cover the basics that affect financial analysis, but we're not tax advisors. Different specialty. That said, understanding how tax obligations flow through your financials is definitely part of analysis. You'll learn to spot when something needs proper tax advice.