Association of Accounting Technicians
About AAT
The AAT is the UK’s leading Accountancy body offering entry level qualifications. The AAT is open to all, regardless of age or experience there is a place that anyone can start their accountancy studies with the AAT. What’s more, First Intuition is the UKs leading AAT provider, with outstanding student success rates.
AAT develops finance qualifications that ensure business can draw upon skilled people, fully equipped to meet its challenges head-on. As part of the AAT community, nearly 124,000 members and students belong to an inclusive association of accountancy professionals around the world.
The Level 2 Certificate in Accounting is the AAT’s entry-level qualification. Under Q2022 this level is made up of four modules in bookkeeping and finance:
- Introduction to Bookkeeping (ITBK)
- Principles of Bookkeeping Controls (POBC)
- Principles of Costing Techniques (PCTN)
- The Business Environment Synoptic (BENV/BESY)
Introduction to Bookkeeping (ITBK)
This unit introduces students to the double-entry bookkeeping system and the associated documents and processes. Students will have learnt all stages necessary to process transactions using both manual and digital systems.
Principles of Bookkeeping Controls (POBC)
This unit builds on the knowledge and skills acquired from studying Introduction to Bookkeeping and explores control accounts, journals, and reconciliations. It takes students through a number of processes used in bookkeeping that help verify and validate the entries made. Students will also understand the use of the journal to the stage of redrafting the trial balance, following initial adjustments.
Principles of Costing Techniques (PCTN)
This unit gives students an introduction to the principles of basic costing and builds a solid foundation in the knowledge and skills required for more complex costing and management accounting. Students will learn the importance of the costing system as a source of information that allows management to plan, make decisions, and control costs.
The Business Environment Synoptic (BENV/BESY)
The synoptic assessment will ask students to apply knowledge and skills gained across the level 2 qualification in an integrated way, within a workplace context. This course provides the learning materials for the Business Environment unit and revision materials for the bookkeeping units.
The Level 3 Diploma in Accounting is made up of four modules:
- Business Awareness (BUAW)
- Financial Accounting: Preparing Financial Statements (FAPS)
- Management Accounting Techniques (MATS)
- Tax Processes for Businesses (TPFB)
AAT Q2022 – Level 3 Diploma in Accounting
Business Awareness (BUAW)
This unit provides students with an understanding of the business, its environment, and the influence that this has on an organisation’s structure, the role of its accounting function, and its performance. Students will learn about the micro- and macro-economic environments, basic business law, risk, ethics, and technology.
Financial Accounting: Preparing Financial Statements (FAPS)
This unit provides students with the skills required to produce statements of profit or loss and statements of financial position for sole traders and partnerships using a trial balance. Students will learn about period end adjustments and reconciliations. They will also be able to interpret financial statements using profitability ratios.
Management Accounting Techniques (MATS)
This unit provides students with the knowledge and skills needed to understand the role of management accounting in an organisation, and how organisations use such information to aid decision making. Students will learn to use spreadsheets when making calculations, manipulating and analysing data, reporting, and forecasting.
Tax Processes for Businesses (TPFB)
This unit explores tax processes that influence the daily operations of businesses and is designed to develop student’s skills in understanding, preparing, and submitting Value Added Tax (VAT) returns to HM Revenue and Customs (HMRC). The unit provides students with the knowledge and skills that are needed to keep businesses, employers, and clients compliant with laws and practices that apply to VAT and payroll.
The Level 4 Diploma in Professional Accounting comprises three compulsory units:
- Applied Management Accounting (AMAC)
- Drafting and Interpreting Financial Statements (DAIF)
- Internal Accounting Systems and Controls (INAC)
Plus two* optional units from a choice of five.
AAT Q2022 – Level 4 Diploma in Professional Accounting
Applied Management Accounting (AMAC)
This unit focuses on the three fundamental areas of management accounting: planning, control and decision making. All organisations rely on the provision of accurate, business-focused information in order to make sound business judgements.
Drafting and Interpreting Financial Statements (DAIF)
This unit provides students with the skills and knowledge for drafting the financial statements of single limited companies and consolidated financial statements for groups of companies. Students will also acquire the tools and techniques required to analyse and interpret financial statements using ratio analysis.
Internal Accounting Systems and Controls (INAC)
The key aim of this unit is to provide students with the tools to evaluate internal controls and to recommend improvements. Students will learn to identify appropriate controls, assess their impact in terms of cost-effectiveness, reliability, and timeliness, and ensure that all functions adapt their working practices to meet new requirements in an ethical and sustainable way.
Optional units – you need to do two of these*
Business Tax (BNTA)
This unit introduces students to UK taxation relevant to businesses. Students will understand how to compute business taxes for sole traders, partnerships and limited companies. They will also be able to identify tax planning opportunities while understanding the importance of maintaining ethical standards. This is an optional unit.
Personal Tax (PNTA)
This unit provides students with the fundamental knowledge of the three most common taxes that affect taxpayers in the UK: income tax, capital gains tax, and inheritance tax. With this knowledge, students will be equipped to prepare not only the computational aspects where appropriate of these taxes, but also appreciate how taxpayers can legally minimise their overall taxation liability. This is an optional unit.
Audit and Assurance (AUDT)
This unit aims to develop a wider understanding of the principles and concepts, including the legal and professional rules of audit and assurance services. The unit will provide students with an awareness of the audit process from planning and risk assessment to the final completion and production of the audit report. This is an optional unit.
Cash and Financial Management (CSFT)
This unit focuses on the importance of managing cash within organisations and covers the knowledge and skills required to make informed decisions on financing and investment in accordance with organisational policies and external regulations. This is an optional unit.
Credit and Debt Management (CRDM)
This unit provides an understanding and application of the principles of effective credit control systems, including appropriate debt management systems. This unit will consider the techniques that can be used to assess credit risks in line with policies, relevant legislation, and ethical principles. Students will also consider what techniques are used to enable the collection of any overdue debts. This is an optional unit.