AAT Professional Diploma in Accounting

The AAT Professional Diploma in Accounting (AQ2016 Syllabus) is worth 56 UCAS credits. It sits on the Qualifications and Credit Framework at Level 4, or Level 8 in the Scottish system.

This course has a Total Qualification Time (TQT) value of 560 hours. The TQT is a measure of how long it will take to complete a qualification and includes the Guided Learning Hours as well as any unsupervised learning and time spent on independent research.

In total, you'll study six units. This includes the four mandatory units, plus two out of the four optional units.

Mandatory Units

Management Accounting: Budgeting

1. Prepare forecasts of income and expenditure
2. Prepare budgets
3. Demonstrate how budgeting can improve organisational performance
4. Report budgetary information to management in a clear and appropriate format

Management Accounting: Decision and Control

1. Analyse a range of costing techniques to support the management accounting function of an organisation
2. Calculate and use standard costing to improve performance
3. Demonstrate a range of statistical techniques to analyse business information
4. Use appropriate financial and non-financial performance techniques to aid decision making
5. Evaluate a range of cost management techniques to enhance value and aid decision making

Financial Statements of Limited Companies

1. Demonstrate an understanding of the reporting frameworks and ethical principles that underpin financial reporting
2. Demonstrate an understanding of the key features of a published set of financial statements
3. Draft statutory financial statements for a limited company
4. Draft consolidated financial statements
5. Interpret financial statements using ratio analysis

Accounting Systems and Controls

1. Demonstrate an understanding of the role and responsibilities of the accounting function within an organisation
2. Evaluate internal control systems
3. Evaluate an organisation’s accounting system and underpinning procedures
4. Analyse recommendations made to improve an organisation’s accounting system

Optional Units (choose two):

Business Tax

1. Complete tax returns for sole traders and partnerships and prepare supporting tax computations
2. Complete tax returns for limited companies and prepare supporting tax computations
3. Provide advice on the UK’s tax regime and its impact on sole traders, partnerships and limited companies
4. Advise business clients on tax reliefs, and their responsibilities and their agent’s responsibilities in reporting taxation to HMRC
5. Prepare tax computations for the sale of capital assets

Personal Tax

1. Analyse the theories, principles and rules that underpin taxation systems
2. Calculate a UK taxpayer’s total income
3. Calculate income tax and National Insurance (NI) contributions payable by a UK taxpayer
4. Account for capital gains tax
5. Discuss the basics of inheritance tax

Cash and Treasury Management

1. Use statistical techniques and financial information to prepare forecasts of cash receipts and payments
2. Prepare cash budgets and monitor cash flows within the organisation
3. Evaluate the principles of cash management within the context of regulation and government monetary policies
4. Evaluate ways of raising finance in accordance with organisational requirements
5. Evaluate ways of investing surplus funds within organisational policies

Credit Management

1. Analyse relevant legislation and contract law that has an impact on the credit control environment
2. Critically analyse information from a variety of sources to assess credit risk and grant credit in compliance with organisational policies and procedures
3. Evaluate a range of techniques to collect debts
4. Critically evaluate credit control in line with organisational policies and procedures
5. Present advice and recommendations to management on the credit control system

You'll choose your optional units once you've begun your studies. Your expert tutor will be happy to advise you on this decision.

This course is perfect if you aspire to run your own accounting practice or hold a senior, well-paying technical accounting role.

If you're looking to become a Chartered Accountant, your AAT qualification will allow you to take a fast-track route with all the major Chartered Accountancy bodies. Find out more under 'Further Education'.

In order to enrol, you'll need significant practical accounting experience or the Advanced Diploma in Accounting (or the Level 3 Diploma, as it was previously known). Our course advisors will be happy to talk your experience over with you to make sure you're choosing the right course.

Once you've completed the AAT Professional Diploma you'll be a fully qualified Accounting Technician. You'll automatically become an affiliate member of AAT, and if you have the relevant work experience you can apply for internationally-recognised professional MAAT status.

You could set up your own practice, or begin further study to become a Chartered Accountant. You'll be qualified for well-paying senior roles such as:

1. Senior Finance Officer
2. Senior Fund Accountant
3. Senior Insolvency Administrator
4. Professional Accounting Technician
5. Assistant Auditor
6. Assistant Management Accountant
7. Accounts Payable and Expenses Supervisor
8. Payments and Billing Manager
9. Commercial Analyst
10. Cost Accountant
11. Fixed Asset Accountant
12. Indirect Tax Manager
13. Payroll Manager
14. Senior Bookkeeper
15. Tax Supervisor
16. Assistant Financial Accountant
17. VAT Accountant

Once you've completed your course, you'll have completed all the AAT Accounting qualification levels.

You could continue your education by becoming a Chartered Accountant. Your AAT qualifications will allow you to fast-track your certification by skipping certain modules, thus achieving chartered status more quickly than by the university route.

All the UK Chartered Accountancy bodies recognise AAT qualifications, and AAT is sponsored by the professional accounting bodies CIPFA, ICAEW, CIMA and ICAS.

Find out how your AAT qualification can fast-track your learning with:

1. Chartered Institute of Public Finance and Accountancy (CIPFA)
2. The Institute of Chartered Accountants in England and Wales (ICAEW)
3. Chartered Institute of Management Accountants (CIMA)
4. The Institute of Chartered Accountants of Scotland (ICAS)
5. Association of Chartered Certified Accountants (ACCA)

You could also become a tax specialist with the Association of Taxation Technicians (ATT).

To achieve your AAT Professional Diploma in Accounting you'll sit six separate assessments. Five of these will be unit assessments:

1. Financial Statements of Limited Companies
2. Management Accounting: Budgeting
3. Management Accounting: Decision and Control
4. + whichever two optional units you chose

The sixth assessment will be synoptic, covering knowledge and skills you've gained across all four of the mandatory units. It won't cover any material from the optional units.