If you wish to upgrade your accounting skills with certified diploma courses, the Association of Accounting Technicians (AAT) level 3 online courses will be the best option for you.
That said there is hesitation among students who are concerned that level 3 of the AAT will be significantly harder to study than level 2. But you cannot assume that unless you know what the course of Level 3 includes, and whether it’s relevant for you.
In fact, you can go to AAT Skillcheck and decide which qualification is right for you.
Now, let’s explore what level 3 entails. Unless
AAT level 3 comprises 6 modules:
- Advanced Bookkeeping
- Final accounts preparation
- Management account costing
- Advanced level synoptic
- Indirect tax
Now let us see what each of these modules include –
- Advanced Bookkeeping
In order to produce final accounts for unincorporated organisations, the unit ‘Advanced Bookkeeping’ helps you build foundational abilities like managing records for non-current assets.
This unit’s goals are –
- To advance the information and abilities acquired at the foundation level of accounting units,
- To develop bookkeeping abilities up to a first trial balance
Furthermore, students will study non-current asset accounting in detail, including the precise recording and control of this important resource that is essential to all organisations: non-current assets.
The student will be able to choose and use appropriate depreciation methods and rates, as well as how to use the various ledger accounts needed to record the purchase and sale of non-current assets.
Students will also start to comprehend how ethical standards apply in the context of their work in this field once they have finished this course. As a result, the student can operate more effectively and independently as a team member, requiring less supervision as their knowledge increases and even starting to oversee more junior team members.
Moreover, when students go into the professional field, they will be able to deal with Financial Statements of Limited Businesses, which they can learn from this course.
Skills to Learn from Advanced Bookkeeping Course
- Use advanced double-entry bookkeeping principles
- Follow processes for purchasing and selling non-current assets
- Construct and keep track of depreciation calculations.
- Record adjustments at the period’s end
- Create and keep a trial balance.
- Final Accounts Preparation
This lesson at the advanced level teaches students how to prepare final accounts for sole proprietors and partnerships while also introducing them to other types of business organisational structures.
This unit’s goal is –
- To give students the basic information and practical skills they need to create accounts for sole proprietorships and partnerships
- Provide background information on the rules controlling company accounts.
- To execute activities while being conscious of potential ethical dilemmas and being knowledgeable about effective information reporting
- To be skilled members of an accounting team who can operate independently and see the organisation’s overall financial picture
The basic knowledge required to learn this unit is final accounts preparation. Since it is strongly related to both the Foundation level units, Bookkeeping Transactions and Bookkeeping Controls, get a revision on the units of the lessons of level 2.
The course unit Final accounts preparation also guides on the ethical standards included in the advanced level course of Ethics for Accountants.
So, once you complete learning this unit, you can begin the professional level class like Financial Statements of Limited Businesses. This course should be taken either alongside or after Advanced Bookkeeping and before Ethics for Accountants.
Skills to Learn from Final Accounts Preparation
- Learners should be able to differentiate between the financial reporting and recording requirements of various types of organisations.
- Describe the necessity of final accounts and the ethical and accounting concepts that guide their preparation.
- Construct accounts for sole proprietorships using inadequate information.
- Partnerships are accounted for by output
- Identify the fundamental distinctions between creating accounts for a sole proprietor and a limited corporation.
- Management Account Costing
Students who complete this unit will have the knowledge and abilities to comprehend the function of cost and management accounting in an organisation and how such information is utilised by organisations to support management decision-making.
The goals of this course involve:
- Prepare students for the professional-level tasks of creating organisational budgets and
- Train performance reports by advancing them from the Foundation level course,
- Make students able to deal with the Fundamentals of Costing.
Students who can successfully complete this part should be able to operate with little oversight in the accounting department of an organisation. In fact, they will be able to collect, analyse, and report expense and revenue information.
Furthermore, the methods needed to deal with direct costs and revenues, as well as how to handle temporary overhead costs, will be taught to the students. These include techniques for inventory control, direct labour costing, allocating and apportioning indirect costs to responsibility centres, calculating overhead absorption rates, and determining prime, marginal, and absorption costing.
The information and abilities that students gain in Elements of Costing at the Foundation level are expanded upon in this particular unit.
Overall, this section equips students with a solid understanding of cost and management accounting principles as well as the skills necessary to put that knowledge to use.
But before you head towards this unit, get a fundamental understanding of ‘costing’ to qualify in management accounting.
Skills to Learn from Management Accounting
- Recognise the intent behind and practical applications of management accounting in organisations.
- Use the methods necessary to cope with costs
- Distribute costs per organisational needs
- Examine and assess budgetary deviations and inform management of them.
- Use management accounting methods as a decision-support tool.
- Advanced Level Synoptic
You must have passed AAT Foundation (Level 2), or you may qualify for pertinent exemptions if you had an intermediate accounting position prior to enrolling in this course or if you have earned pertinent A Levels.
The reason for mentioning this is that, in the new synoptic course module, the assessment’s short code will be changed to ADSY.
Here you will be assessed based on the expected learning outcomes for the courses advanced bookkeeping, final accounts preparation, management accounting & costing, and ethics for accountants.
Since this will be a particular test assessment, you have to be particular about what you answer.
Skills to Learn from Advanced Level Synoptic
- You learn how to handle ethical dilemmas in the workplace through ethics classes.
- Learn to handle issues that arise in specific circumstances.
- Evaluation of your retention of the information from the previous three units.
- Indirect Tax
Indirect taxes, notably the tax known as value-added tax in the UK and throughout this unit, are the subject of this Advanced level unit (VAT). The goal of the lesson is to help students improve their ability to create and submit returns to the appropriate tax authorities in circumstances when the transactions that must be included are fairly typical. Nonetheless, this unit also includes a few unusual problems.
This unit looks forward to the goals of –
- Helping students to gain the knowledge and abilities necessary to ensure that their employers and clients comply with the rules and regulations governing the indirect taxes on sales and purchases.
- Particularly with regard to routine and certain non-routine VAT activities, the coursework is created to guarantee that students are capable of doing these procedures mostly autonomously.
The students will likely still need some management, though, for more complex and extensive VAT transactions. From an ethical standpoint, it is crucial that the student comprehends and applies the VAT laws. A high level of professional expertise, objectivity, and integrity must be used in all VAT work.
Skills to Learn from Indirect Tax
- Recognise and comply with VAT legal requirements
- Recognise the effects on the company of errors, omissions, and late filing and payment.
- Complete VAT returns accurately and promptly.
- Comply with regulatory and organisational requirements by reporting VAT-related information within the organisation.
The last and sixth-course unit is the spreadsheet assessment. But it’s more than just using the tool for entering data. You will be provided integrated spreadsheet training to use within the other Advanced level accountancy subjects.
This spreadsheet assessment is still required for the on-demand Excel skills, and the assessment will merely be recorded as “Competent” or “Not Yet Competent,” which will not affect your certification’s final grade. However, to earn the final certification of AAT Level 3, students must pass this test.
For that, an on-demand assignment (in.xlsx format) will be given and graded by AAT with a six-week turnaround for results that will be used to evaluate Spreadsheets for Accounting (SPSH).
Now, this exam takes two hours to complete, and a score of 70% is required to pass. The SPSH test can be taken at an assessment centre or at home.
Skills to Learn from Spreadsheet
1. Create and organise suitable spreadsheets to satisfy customer needs.
2. Record, prepare, and organise data using spreadsheet software.
3. Analyse data using pertinent tools.
4. Verify data accuracy and security using software tools.
5. Prepare and report accounting data using tools and processes
Business firms always look for potential candidates who can grasp the data problems and solve them in less time. For that, a certification in a course like AAT Level 3 is necessary. And this blog will guide you with an overview of what includes in this course unit for better understanding.
Author Bio – Gregory Addison is an online educator, specialised in Accounting. He is also associated with the academic brand My Assignment Help where he trains students on using oxford referencing and other formats in accounting assignments. He also loves to read comics.