Syllabus for AAT Level 2, 3, & 4 course

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AAT Level 2 Certificate in Accounting
Courses / Accounting / AAT / AAT Level 2, 3 & 4 Course / Syllabus for AAT Level 2, 3, & 4 course

The AAT Level 2, 3 & 4 course will take you right the way through the AAT pathway, starting out with accounting basics and progressing to advanced, specialist subjects. Topics covered include double-entry bookkeeping, accounts preparation, and drafting financial statements.

We translate the syllabus that the AAT sets into a combination of activities, classes, and other content to ensure you get the best learning experience possible.

This combined course covers twenty units, of which seventeen must be completed: five in Level 2, six in Level 3, and nine in Level 4.

The AAT Level 2 qualification consists of five units:

1. Bookkeeping Transactions
Review double-entry processes and business documentation, trial balances, the cashbook, reconciling a supplier’s statement, discounted transactions and payment records.

2. Bookkeeping Controls
Be able to prepare control accounts, use journals, understand the banking system, and manage cash books, petty cash and control accounts.

3. Elements of Costing
Learn how to calculate product costs and budget effectively using spreadsheets including cost behaviour, manufacturing accounts, labour costing, product coding and costing for inventories.

4. Using Accounting Software
Develop the skills needed to professionally process transactions using computerised accounting software, learn how to effectively set up a company, create customer and supplier records, manage ledgers, enter sales and purchase transactions, and understanding banking receipts and payments.

AVADO students now have exclusive access to our free Xero Accelerate add-on to the Using Accounting Software unit. Revisit the case studies and apply your new skills within Xero's online accounting software and future-proof your knowledge.

5. Work Effectively in Finance
Discover how to work effectively within an accounting team, complete accounting and payroll functions, learn about professional ethics and understand key business skills such as managing workload, personal development and literacy and numeracy skills

The AAT Level 3 qualification consists of six units:

1. Advanced Bookkeeping
Be able to use a sub-divided accounting system to prepare trial balances and reconciliations, comprise the valuation of inventory, prepare accounts for irrecoverable debts and understand the disposal of non-current assets.

2. Final Accounts Preparation
Learn how to prepare accounts for different business types, record changes in the structure of a partnership and prepare final accounts from incomplete records.

3. Indirect Tax
Discover further elements to VAT legislation governing costs and learn how to prepare a VAT tax return.

4. Management Accounting: Costing
Be able to prepare budget accounts for company costs (materials, labour and expenses) and learn how to forecast for company revenues considering break-even and limiting factors.

5. Ethics for Accountants
Discover more about the ethical guidelines within accounting and the legal considerations that apply to members in practice.

6. Spreadsheets for Accounting
Learn how to create advanced spreadsheets for accounting using appropriate formulas and formatting.

The AAT Level 4 qualification consists of nine units, of which you must complete six:

Compulsory units:

1. Management Accounting: Budgeting
Develop your skills working with budgetary control systems and learn how to create advanced budget reports to account for flexible budgeting and variances.

2. Management Accounting: Decision and Control
Be able to analyse performance based on a number of variable scenarios (materials, labour and overhead costs) and reconcile budgeted cost with actual cost.

3. Financial Statements of Limited Companies
Learn how to prepare robust financial statements in published format that adhere to regulatory frameworks and discover how to work with group accounts.

4. Accounting Systems and Controls
Learn how to professionally develop and manage a company’s accounting system by analysing current systems and recommending improvements.

Optional units, pick two out of five:

  • Personal Tax - Learn how to successfully process employee tax.
  • Business Tax - Become familiar with the nuances of business taxes.
  • Cash and Treasury Management - Learn about cash flow patterns and forecasting future payments.
  • Credit Management - Enhance your knowledge about company liquidity and credit control.
  • External Auditing - Understand how the audit process works and learn how to contribute to the examination when one is conducted.

Also included in your course is a free Xero Advisor Certification short course. You will learn the basics of using Xero's cloud-based accounting software, giving your CV another edge in a competitive job market.

During the course you will take sixteen exams: thirteen computer-based assessments and three synoptic exams, which will all be held at an approved exam centre. The AAT introduced synoptic exams as part of their new AQ2016 syllabus; designed to test your knowledge across all the units in a qualification.

Our programme has been designed with these synoptic assessments in mind so you know you’ll be fully prepared before you sit them. Along with advice from your tutor, you can decide when you’re ready to take your exams. In fact we're so confident that we offer you a Pass Guarantee: follow the milestones on the campus and if you don't pass your synoptic exam first-time we'll give you free tutor support for a resit.*

Key course information:

  • Accredited by the Association of Accounting Technicians (AAT)
  • Level 4 qualification – equivalent to a Foundation Degree or Higher National Diploma.
  • Thirteen computer-based exams and three synoptic assessments, all taken at an external test centre
  • Typically complete within 36 months
  • Free Xero Advisor certification and Xero Accelerate course add-on
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