AAT Professional Diploma in Accounting (Level 4)

What is AAT?

The AAT diploma is the leading professional qualification for those experienced professionals in the accounting industry. You can find general details about AAT on this page, and information about AAT Level 4 below…

AAT Level 4 Professional Diploma

The AAT Level 4 Professional Diploma in Accounting is the top qualification from AAT. This level is ideal for those who have a lot of accounting experience and are looking for a leadership role or to start their own accountancy practice.

Once you gain your qualification, you will be a fully qualified Accounting Technician, and will become automatically an affiliate AAT member, and with the relevant work experience you can apply for the worldwide recognised professional MAAT status.

AAT Level 4 Syllabus (AQ2016)

The AAT Level 4 Professional Diploma in Accounting has a Total Qualification Time value of 560 hours. This is a measure of how many hours it takes to complete the course, and includes the Guided Learning Hours as well as unsupervised learning spent independently.

On this level, you will need to study a total of four mandatory units, and two additional units, from a choice of four optional units.

The AAT Level 4 Professional Diploma in Accounting covers the following areas of knowledge:

Mandatory Units

Management Accounting: Budgeting

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

Management Accounting: Decision and Control

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

Financial Statements of Limited Companies

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

Accounting Systems and Controls

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

Optional Units

Business Tax

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

Personal Tax

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

Cash and Treasury Management

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

Credit Management

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

Who Should Study AAT Level 4?

This course is perfect for those people who aspire to start their own accounting practice, or for those who aspire to be in a senior, well-paid accounting position. You should have previously gained the Advanced Diploma in Accounting and have extensive accounting experience.

If you are not sure which AAT level is the right for you, then complete the AAT Skillcheck. This is a short 30 minutes online test which will tell you what is the level that suits you best.