AAT Level 2 and 3 Accounting

AAT Level 2 Certificate in Accounting

Unit 1 Introduction to bookkeeping

• How to set up bookkeeping systems.
• Customer transactions.
• Supplier transactions.
• Processing of receipts and payments.
• Processing transactions into ledger accounts.

Unit 2 Principles of bookkeeping controls

• Use control accounts.
• Reconcile bank statements with the cash book.
• Use the journal.
• Produce trial balances.

Unit 3 Principles of costing

• The cost recording system within an organisation.
• Use cost recording techniques.
• Provide information on actual and budgeted costs and income.
• Use tools and techniques to support cost calculations.

Unit 4 The business environment (synoptic assessment)

• Principles of contract law.
• External business environment.
• Principles of corporate social responsibility (CSR), ethics, and sustainability.
• Impact of selling up different types of business entity.
• Finance functions within an organisation.
• Work in appropriate formats and communicate effectively.
• Importance of information to business operations.

AAT Level 3 Diploma in Accounting

Unit 1 Business awareness

• Business types, structure, governance, and the legal framework in which they operate.
• Impact of the external and internal environments on business, their performance, and decisions.
• Understand how businesses and accounts comply with principles and professional ethics.
• The impact of new technologies in accounting and the risks associated with data security.
• Communicating information to stakeholders.

Unit 2 Financial accounting: preparing financial statements

• Accounting principles underlaying financial accounts preparation.
• Principles of advanced double-entry bookkeeping.
• Implementing procedures for the acquisition and disposal of non-current assets.
• Prepare and record depreciation calculations.
• Record period end adjustments.
• Produce and extend a trial balance.
• Produce financial statements for sole traders and partnerships.
• Interpret financial statements using profitability ratios.
• Prepare accounting records from incomplete information.

Unit 3 Management accounting techniques

• Purpose and use of management accounting within organisations.
• Use techniques required for dealing with costs.
• Attribute costs according to organisational requirements.
• Investigate deviations from budgets.
• Use spreadsheet techniques to provide management accounting information.
• Use management accounting techniques to support short-term decision-making.
• Principles of cash management.

Unit 4 Tax processes for businesses

• Legislation requirements relating to VAT.
• Calculate VAT.
• Review and verify VAT returns.
• Understand the principles of payroll.
• Report information within the organisation.

Course duration

Once enrolled, you have up to two years to complete your studies. The course will take approximately 960 hours to complete in total, of which 655 hours are proposed guided learning hours.

Study method

This course will be studied entirely via distance learning, meaning you will complete your learning either from home or a place that suits you. Full tutor support will be available via email, so if you have any questions or need some guidance, your tutor will be here to help. Your course materials will include a series of self-assessment exercises and tutor-marked questions to allow both yourself and your tutor to monitor your progress. 

You will pay a one-off registration fee for each level you study which will give you access to the qualification for its lifetime, which is typically four to five years. The membership fees for this bundle course are £175 for level 2 and £228 for level 3. Please note, you can break these costs down by paying for each level separately as and when you progress through the course.

Once you have registered with AAT for your student membership, you will have access to their library of online resources and additional support materials, including sample assessments to help you prepare for your exams. 

We will send an email with a link to download the free Sage software. 

Assessment

The qualification is assessed through 16 tutor-marked assessments, seven external exams, and one synoptic assessment which you will complete at the end of your course. This computer-based exam must be sat under controlled conditions at an external examination centre. The exams will be available on-demand throughout the year, while the synoptic assessments are available on set dates throughout the year. Your tutor will be able to help you decide when you are ready to take the assessments. 

Booking your assessments 

You can choose to add your exams to your enrolment. If you choose this option, we will book and pay for your exams for you. Our partner exam centres for students choosing to book their exams through us are based in Birmingham or Irthlingborough near Northampton. When choosing to add your exams to your enrolment, it is important to note that we are only able to book your exams at the specified centres in either Birmingham or Irthlingborough, and therefore, you must be prepared to travel to one of those centres to complete your exam. 

Alternatively, if you choose not to add your assessments to your enrolment, you will need to book and pay for these separately. 

Course outcome

Once you have successfully completed your tutor-marked assignments and exams, you will receive both your AAT Level 2 Certificate in Accounting and AAT Level 3 Diploma in Accounting from The Association of Accounting Technicians (AAT). 

Awarding body

The Association of Accounting Technicians (AAT) has been established for over 30 years and is the world’s leading professional membership body for over 130,000 accounting professionals. AAT’s vocational qualifications are recognised internationally and by all chartered and certified accountancy bodies in the UK. 

What next?

The skills developed during this course will enable you to apply for the following roles: 

• Assistant accountant  

• Senior bookkeeper 
• Accounts assistant 
• Audit trainee 
• Credit controller 
• Finance assistant 

• Finance officer 
• Payroll supervisor 
• Tax assistant 

Alternatively, you could progress to the next level of study by enrolling on the AAT Level 4 Diploma in Professional Accounting or progress to higher education. 

Take a read of our ‘How to Become an Accountant‘ career guide.