These notes resulted from a series of lectures at the IAC winter school. They are designed to help students, especially those just starting in subject, to get hold of the fundamental tools used to study accretion powered sources. As such, the references give a place to start reading, rather than representing a complete survey of work done in the field. I outline Compton scattering and blackbody radiation as the two predominant radiation mechanisms for accreting black holes, producing the hard X-ray tail and disc spectral components, respectively. The interaction of this radiation with matter can result in photo-electric absorption and/or reflection. While the basic processes can be found in any textbook, here I focus on how these can be used as a toolkit to interpret the spectra and variability of black hole binaries (hereafter BHB) and Active Galactic Nuclei (AGN). I also discuss how to use these to physically interpret real data using the publicly available XSPEC spectral fitting package (Arnaud et al 1996), and how this has led to current models (and controversies) of the accretion flow in both BHB and AGN.
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