As this is a Level 4 course the theories, concepts and topics that you cover will be more complex. The AAT Professional Diploma in Accounting at Level 4 is the final course in your accountancy training and as a result you will explore advanced skills which will position you to apply for managerial roles in the industry. There are also two optional units which allow you to specialise in a particular area. The two topics include drafting financial statements and evaluating financial performance.
There are six units in total for the Level 4 qualification, four compulsory units and then a further two optional units from a set of five that you can choose from.
Compulsory units
- Financial Statements of Limited Companies – within this unit you will explore reporting frameworks, rules and regulations, preparing accounts, consolidating and interpreting financial statements.
- Management Accounting: Budgeting – this unit will teach you about the preparation of financial forecasts relating to income and expenditure, preparing and overseeing budgets and management reporting.
- Management Accounting: Decision and Control – the third compulsory unit of the course will cover the analysis and evaluation of costing techniques, how to use costing for performance improvement, the use of statistical techniques to undertake analysis of business information and performance techniques (both financial and non-financial) to facilitate decision making processes
- Accounting Systems and Controls – the final unit will teach you how to conduct evaluations of internal control and accounting systems and when it is suitable to make recommendations for improvement.
Optional units
The final two units required to complete the course will be selected from a set of five options including:
- Option 1 Business Tax – This unit will focus on sole traders, limited companies and partnerships and you will learn the relevant rules, principles and regulations, how to complete tax returns and how to provide tax advice
- Option 2 Personal Tax – If you elect to study this unit you will learn the principles, regulations and rules that relate to tax systems as well as being able to calculate taxable income, work out income tax and national insurance contributions and account for capital gains tax. The unit will also cover inheritance tax fundamentals.
- Option 3 External Auditing – Students who study this option will learn the key principles involved in the audit process and will be able to evaluate the processes and procedures that are relevant to accounting systems while being able to gather evidence for audit
- Option 4 Cash and Treasury Management – The application of statistical techniques to prepare forecasts, tax receipts and payments, monitoring cash flows and preparing cash budgets, understanding regulation and monitoring policies as well as raising finance and investing surplus funds
- Option 5 Credit Management – A grounding in contract law and legislation, undertaking credit risk assessments and awarding credit, techniques to collect debt and evaluating credit control procedures