AAT 2014 Student Guide

Focus on The FuTure WiTh The AAT AccounTing QuAliFicATion

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Five steps to AAt

1. Read this guide

Get to know the qualification outline and take a look at some of our success stories. You’ll find more details about the AAT Accounting Qualification on page 16.

2. select your training provider

Pick and enrol with a training provider whose learning options suit you. Providers are always happy to advise you without obligation, so feel free to ask about the qualification before you register.

3. Register as an AAt student member

To start your training, you’ll need to register with us as an AAT student member. Join a network of 130,000 members – go online at aat.org.uk/start

4. Qualify

Develop your skills and underpin them with knowledge. Two to three years of practical training and diligent study, and you’ll have achieved a recognised, professional qualification for your CV. And with full support from AAT, you’ll keep your career on the right path.

5. MAAt status

Once you’ve qualified, and built up your work experience, you’ll be entitled to apply for AAT professional membership: a respected sign of accounting excellence. And, with the letters MAAT after your name, it’s a great way to stand out from the crowd.

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Contents

How AAT can help you 7

Where employers look for accounting talent 8

AAT: a sound choice in every financial sense 10

AAT training providers: working with us for you 11

Learning options to suit your lifestyle 13

What will the qualification cost? 14

Support at every stage of your journey 15

The route to qualification: introductory level 16

The route to qualification: intermediate level 18

The route to qualification: advanced level 20

What happens after qualifying 24

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Seeking a professional qualification to support 20 years in NHS finance, Jason tonge started with AAT Access and now has advanced level in his sights.

“ I work in management accounts for a £300m hospital trust. We regularly report to Government on financial performance, so we need to produce accurate figures and forecasting.

Although I’ve lots of experience, I had nothing on paper to show that I could do the job. But Lancashire Teaching Hospitals encouraged me to study and bring the benefits to the workplace.

Having not studied for a long time, I worried that I might feel out of place. But the study environment has made me feel so comfortable. And when you get your first few assessments under your belt, your confidence grows, doesn’t it?”

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How AAt CAn Help you

Working in accounting, you’ll know as well as anyone that it’s a demanding profession. But if you want to progress beyond the basics, there’s always plenty to learn.

The key to a truly rewarding career in accounting lies in thoroughly understanding the broad sweep that accountancy has on modern life.

Fund management, tax supervision, head of finance or the company itself, maybe senior financial journalism or a management consultant – you’ll know more than anyone that a career in accountancy is more than just being good with numbers.

Ability to manage a budget at multinational level, intimate knowledge of tax laws and banking systems, a solid grasp of how different organisations and markets react to global economic conditions – if you’re looking to progress and have a successful career in accounting, these are the bare necessities.

the perfect mix of head and hands-on

The wisdom of the workplace, while useful in itself, is never enough in isolation. To attain the exclusive rewards of top accounting technicians, the hands-on activity must be underpinned with a range of value-adding skills.

A qualification with true international status and membership of a renowned body that’s rewritten the rulebook on accountancy training.

To be the best, you needn’t look further.

As a finance professional, how have you studied? If you’ve taken an accountancy course before, did it give you a professional qualification with such international authority it could be your passport to a better life?

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wHeRe eMployeRs look FoR ACCounting tAlent

This assures any future employer of your talent and effectiveness; that you can be trusted to steer the business in the right direction. And the AAT Accounting Qualification has global reach; with employers throughout the world confident in your ability to deliver, geography needn’t stop you achieving your goals.

who could you be working for?

AAT qualifiers are already in well-rewarded senior roles with thousands of major employers, from blue-chip corporates to the giants of the public sector. The NHS, Vodafone, Morrisons, the Metropolitan Police, KPMG and many others routinely seek and hire AAT graduates for their knowledge, skills, diligence and enthusiasm.

The AAT Accounting Qualification signifies you have both accountancy expertise and the skills to convert theory into practice.

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Joanne evans, Finance Manager at P&G’s Global Financial Service Centre works closely with AAT to deliver finance training that’s key to developing her team’s talent.

“ We see huge benefits from our staff as they are able to apply their training to their job from day one and continue to as their careers progress. They are becoming professional accountants and that’s great for us to see.

We’re able to flow them between departments to leverage what they’ve learnt through their training, which is great for our business.”

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AAt: A sound CHoiCe in eveRy FinAnCiAl sense

Since our foundation in 1980 we’ve become a leading worldwide membership organisation for accounting students, people already working in accountancy and self-employed business owners.

AAT links specialist training for financial newcomers, to practical career paths in professional accountancy. We offer a vocational progression to chartered and certified accountancy qualifications (including those of ACCA, CIMA, CIPFA, ICAS and ICAEW), giving you a comprehensive choice of exemptions and options to continue training.

There’s no question of the AAT Accounting Qualification’s value when set against training elsewhere. Our advanced level is equivalent to the first year of an academic degree. But consider the huge costs of modern university education: the AAT Accounting Qualification isn’t just a great career move; it’s your soundest choice in every financial sense.

You can also take advantage of computer based assessments: flexible, practical ways in which you can demonstrate the skills you’re developing during your studies.

Agreed with your training provider, you’ll be able to sit assessments as and when you’re ready. Many units are assessed via formal computer based tests, marked automatically and with provisional results available straight away.

AAT is much more than an examining body. A visible presence in more than 90 countries, we’ve some 130,000 members represented at every level of the finance and accounting world.

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AAt tRAining pRovideRs: woRking witH us FoR you

We work only with colleges who are best equipped to guide you, as an AAT student, through your training and on to a successful career in finance and accountancy.

We will work with your training provider to support you at every level of your qualification. Your training provider then delivers your tuition, while we continue to interact with you through e-learning, study support and your AAT student membership.

We also actively encourage training providers to forge links with local and national businesses, which can often lead to direct pathways for you to the employment market.

How do i find a training provider?

To choose an AAT training provider with the location and learning style to suit you, please go to aat.org.uk/trainingproviders

The AAT Accounting Qualification is delivered by over 500 approved training providers across the UK and internationally.

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Ceris williams used introductory level training to enhance her skills and return to accounting as an accounts and payroll officer in the not for profit sector.

“ I’d always thought that qualifications in accounting were only for people who want to be a chartered accountants, but I quickly came to realise that AAT members work in a broad range of industries and in a variety of roles.

I studied by distance learning so that I could learn at my own pace. I self-funded my training because I wanted to invest in a new career and new future and ultimately it has paid off because I got the job that I wanted.

Now I do sales, purchase ledger, payroll and pretty much the full spectrum. I was able to cope with the demands of the varied jobs because I’ve had a good grounding in all areas.”

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leARning options to suit youR liFestyle

If you’re not working constantly, full-time study with one of our training providers might suit you best, and could mean faster qualification.

If you’ve a full-time job, part-time training might make more sense. As you’re already working in accountancy, you’ll be able to use the skills you’re developing with AAT training, learning as you progress and reaping the benefits straight away.

Another option is distance learning from home. This is appealingly flexible: choose where and when to study, and perfect your new skills in your own time.

How long’s the studying?

One of the great things about the AAT Accountancy Qualification is that you can study at the pace, as well as the place, that suits you.

• Each level is a qualification in its own right and takes on average one year to complete. Although, your experience in accounting could mean that you’re training provider determines that you’re exempt from the introductory and/or intermediate level.

• This would mean roughly three years to qualify.

• You should spend three hours a week outside of class for each unit you’re studying, then increase it in the run-up to assessments when you’re revising.

How will i be assessed?

To see how you’re getting on with your studies, you’ll be assessed via our flexible, practical computer based assessments (CBAs).

Agreed with your training provider, you’ll sit the assessments whenever you’re ready. It’s where your understanding of many outcomes is measured using formal tests, which are automatically marked for immediate provisional results.

Some outcomes use other computer based methods, including projects, reports and workplace evidence. These are manually marked and you’ll normally have the results within six weeks.

AAT offers you a range of study options: full-time, part-time or distance learning. Your training can be delivered in the classroom, online or through home study.

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wHAt will tHe QuAliFiCAtion Cost?

It will finally depend on how and where you study. However, the costs of training for the AAT Accounting Qualification will fall into one of two categories.

1. training provider fees

Paid to your training provider these cover your tuition and sometimes your course materials. Since the cost of AAT training depends on the size, type and location of each training provider, you’ll find big differences in fees between providers – so it really does pay to shop around.

2. AAt fees

Paid to AAT, these cover your student registration and the support you’ll have throughout your training as a student member. There are also fees for taking AAT assessments.

Can i involve my employer?

As you’re already working in accounting, it’s well worth telling your boss that you’re training with AAT; their support could be a real boost. Because the qualification is practical in nature, your employer might be willing to help with the costs. Some firms will pay training providers’ fees, AAT fees or for necessary books – and sometimes all three. Your employer might also give you time off for classes or revision, and may be able to involve you in workplace projects which will help your studies.

where can i get help with paying for my course?

You might be able to get financial support for your AAT training from the government or other agencies. It all depends on your circumstances. If you’re aged 16-24, for example, some courses are free. For more about possible sources of funding, visit aat.org.uk/funding or ask your training provider.

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suppoRt At eveRy stAge oF youR JouRney

As an AAT student member, you can take advantage of a host of resources to help you as you study.

online study support through your MyAAt account

• E-learning: easy, interactive audio-visual tutorials on a variety of accounting and finance-related topics.

• Access to sample assessments so you can test your knowledge and get familiar with the computer based assessments format.

• Personalised study zone: reading lists, practice papers, assessors’ guidance, e-seminars and e-learning modules.

• Comprehensive archive: articles relevant to your studies.

Career services

• CV builder: the ideal way to brush up on your CV or create a new one.

• Interview simulator: your interactive, step-by-step guide to surviving the all-important interview, ensuring the first impression is the right one.

• Career planner: following the progress of your career goals, with alerts to ensure you’re on the right track.

Accounting Technician magazine

You’ll receive your free bimonthly copy of Accounting Technician magazine. It’s full of articles to support your training, plus expert opinions, accountancy news and job vacancies.

StudentPlus e-newsletter

Each month you’ll receive StudentPlus, our email newsletter, with its links to study support articles, key dates and membership benefits.

Branch networking opportunities

At our regional branches throughout the UK, you can often enjoy free events. Specially for student members, they’re a great way to complement your training and network with AAT members.

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tHe Route to QuAliFiCAtion intRoduCtoRy level

A range of basic accounting principles and techniques, from costing and double-entry bookkeeping to computerised accounting.

Ideal if you’re new to finance or you want to brush up on your foundation knowledge and skills. Once you’ve completed the introductory level, you’ll be awarded the AAT Level 2* Certificate in Accounting.

Basic costing

• Understanding an organisation’s cost recording system and using it to record or extract data

• Use of spreadsheets to convey information on actual and budgeted income and expenditure

Computerised accounting

• Entering data at the start of an accounting period to set up customer and supplier accounts

• Recording and processing customer and supplier transactions

• Recording and reconciling bank and cash transactions

• Processing and using journals to enter accounting transactions

• Production of reports (day books, account activity, aged analysis, statements or remittance advice)

working effectively in accounting and finance

• Understanding an organisation’s accounting or payroll function

• Using numeracy and literacy communication skills

• Working independently or in a team to prioritise tasks and manage colleagues’ responsibilities

• Understanding ethical values, principles and importance of confidentiality

• Understanding and explaining benefits to organisations of sustainable values

processing bookkeeping transactions

• Understanding double-entry bookkeeping, integrating books of prime entry and describing coding system functions

• Understanding discounts and settlement, trade and bulk discount differences

• Preparing and processing customer and supplier invoices and credit notes

• Totalling and balancing a 3-column analysed cash book

• Totalling, balancing and reconciling petty cash records within an analysed petty cash book

• Processing ledger transactions and extracting a trial balance

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Control accounts, journals and the banking system

• Understanding the purpose and use of control accounts and journals

• Maintaining and using control accounts and the journal

• Reconciling a bank statement with the cash book

• Understanding the banking process and main services of banks and building societies

• Understanding requirements of retention and storage relating to banking documents

what sort of job could i expect after completing the introductory level?

• Accounts Administrator

• Accounts Assistant

• Accounts Payable Clerk

• Bookkeeper

• Payroll Administrator

• Payroll Clerk

• Payroll Officer

• Purchase/Sales Ledger Clerk

• Tax Assistant/Trainee

• Trainee Accounts Technician

• Trainee Auditor

what’s my potential salary range after completing the introductory level?

£8,320 - £24,000

Salary ranges are from AAT’s 2013 Salary Survey for people working full-time. Ranges represent the middle 75% at each level of the qualification.

* In Scotland, Level 2 is equivalent to Level 5.

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tHe Route to QuAliFiCAtion inteRMediAte level

This intermediate level introduces more complex accounting tasks, such as maintaining cost accounting records and the preparation of reports and returns.

Ideal if you’ve completed the introductory level or you’re already at a more intermediate level and you want to develop your accounting skills. Once you’ve completed the intermediate level, you’ll be awarded the AAT Level 3* Diploma in Accounting.

Accounts preparation

• Understanding accepted principles of accounting and double-entry bookkeeping

• Understanding accounting methods of recording non-current assets

• Accounting for purchase of non-current assets

• Accounting for depreciation and adjustments

• Accounting for disposal of non-current assets

• Preparing and extending the trial balance

prepare final accounts for sole traders and partnerships

• Understanding the process involved in preparing final accounts

• Preparing accounting records from incomplete information

• Producing final accounts for sole traders

• Understanding partnerships’ legislative and accounting requirements

• Preparing a statement of profit or loss appropriation account

• Preparing a financial position statement relating to a partnership

Costs and revenues

• Understanding an organisation’s costing systems

• Recording and analysing cost information

• Apportioning costs to organisational requirements

• Analysing budget deviations and reporting these to management

• Using information gathered from costing systems to assist decision making

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professional ethics

• Understanding principles of ethical working

• Understanding ethical behaviour when working with internal and external customers

• Understanding when and how to take appropriate action following suspected ethical codes breaches

• Understanding the ethical responsibility of finance professionals in promoting sustainability

indirect tax

• Understanding VAT regulations

• Completing VAT returns accurately and on time

• Understanding VAT penalties and adjusting for previous errors

• Communicating VAT information

spreadsheet software

• Using a spreadsheet to enter, edit and organise numerical and other data

• Selecting and using appropriate formulae and data analysis tools and techniques

• Presenting, formatting and publishing spreadsheet information

what sort of job could i expect after completing the intermediate level?

• Assistant Accountant

• Accounts Payable Clerk

• Audit Trainee

• Bookkeeper

• Corporate Recovery Analyst

• Credit Controller

• Finance Assistant

• Insolvency Executive

• Payroll Supervisor

• Tax Accountant

what’s my potential salary range after completing the intermediate level?

£11,000 - £24,000



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tHe Route to QuAliFiCAtion AdvAnCed level

The advanced level covers higher accounting tasks, including drafting financial statements, managing budgets and evaluating financial performance. You’ll also be able to specialise in areas such as tax, auditing and credit control.

Ideal if you’ve progressed through introductory and intermediate, or you’re at a more advanced stage in your career and you want a qualification to give you the confidence and proof that you have the skills to do the job. Once you’ve completed the advanced level, you’ll be awarded the Level 4* Diploma in Accounting and be a fully qualified accounting technician.

Financial statements

• Understanding the regulatory framework underpinning financial reporting

• Understanding key features of published financial statements

• Drafting a limited company’s statutory financial statements

• Drafting consolidated financial statements

• Interpreting financial statements using ratio analysis

Budgeting

• Preparing budgets and income and expenditure forecasts

• Assessing budgetary impact of internal and external factors

• Using budgetary control to improve organisational performance

Financial performance

• Collating and analysing cost information from various sources

• Measuring performance and managing costs appropriately

• Making suggestions for improving financial performance by monitoring and analysing information

• Preparing performance reports for management

internal control and accounting systems

• Understanding importance and use of internal control systems

• Evaluating the accounting system and identifying areas for improvement

• Conducting ethical and sustainability evaluations of accounting systems

• Making recommendations to improve the accounting system

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Specialist units for advanced level – two options from the following five:

Business tax

• Completing corporation tax returns and supporting computations for incorporated businesses

• Understanding impact of legislation and legislative changes

• Understanding tax law and its implications for incorporated/unincorporated business

• Understanding capital assets

personal tax

• Calculating income from all sources and identifying taxable and non-taxable items

• Applying current legislation to calculate tax payable on income

• Accounting for capital gains tax according to current legislation

• Preparing accurate computations and complete relevant parts of self-assessment tax returns

external auditing

• Planning an audit identifying areas for verification and associated risks

• Conducting a supervised audit

• Preparing draft reports for approval

• Understanding auditing principles and legal and professional standards required for an external auditor

Cash management

• Using statistical techniques and financial information to prepare income and expenditure forecasts

• Preparing cash to monitor an organisation’s cash flow

• Managing cash balances effectively

• Investing surplus funds, observing organisational policies

Credit control

• Understanding relevant legislation and impact on credit management

• Using information from various sources to grant customers’ credit within organisational guidelines

• Using a range of techniques for debt collection

• Monitoring and controlling credit supply

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tHe Route to QuAliFiCAtion AdvAnCed level

what sort of job could i expect after completing the advanced level?

• Accounts Payable and Expenses Supervisor

• Assistant Financial Accountant

• Commercial Analyst

• Cost Accountant

• Finance Manager, Payroll and Pensions

• Fixed Asset Accountant

• Indirect Tax Manager

• Payments and Billings Manager

• Payroll Manager

• Senior Bookkeeper

• Senior Finance Officer

• Senior Fund Accountant

• Senior Insolvency Administrator

• Tax Supervisor

• VAT Accountant

what’s my potential salary range after completing the advanced level?

£12,600 - £26,000



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sanaz Amidi is the Director of Rosetta Art Centre. She uses her AAT qualification to identify the synergies between arts, accountancy and business.

“ I studied AAT to gain an understanding of how business works and feel more confident in my role as project manager in a creative industry.

I developed transferable skills with my AAT qualification and it’s meant that I’ve been able to continue training for a global executive MBA with a solid understanding of accounting and finance.

I’ve also become an AAT full member which has given me credibility and pride, and with that a sense of responsibility to the profession.”

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Even though you might have finished your AAT Accounting Qualification, your journey with us doesn’t have to end there. And there are plenty of good reasons for a long-term relationship.

wHAt HAppens AFteR QuAliFying

As long as you’re a student member you’ll enjoy all the AAT support you need. But long after you qualify we’ll be around to help you develop your career as an accounting professional, ensuring the outcomes for which you’ve worked so diligently are yours for the taking.

On completing your final qualifying level you’ll enjoy generously reduced fees for further training with a host of excellent UK accountancy bodies. At over 30 UK universities, AAT qualification automatically provides exemptions on accounting and finance-related degrees.

How does chartered status sound?

If you achieve all three levels of the AAT Accounting Qualification, every UK chartered accountancy body will grant you an exemption from the first level of its professional qualification. For details visit aat.org.uk/afterqualifying

even more benefits with AAt full membership

Once you’ve finished your qualification you’re entitled to an easy move upwards to full AAT membership. This allows you even more advantages, including the use of the letters MAAT after your name – internationally recognised as an mark of accounting excellence.

Like almost 3,500 other members, you can also determine your own future as an AAT licensed member in practice (MIP). This lets you choose how you work:

• decide your own services, clients and hours

• act as a sole trader, partner, director or shareholder

• work from home, close to your family or at an existing job

• be a self-employed part-timer while you work for another employer.

what’s my potential salary range after becoming an AAt full member (MAAt)?

£17,000 - £35,000


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Since qualifying with AAT and moving on to ACA, dipesh Joshi has stayed in touch with AAT as a full member – and started to enjoy the career rewards he always wanted.

“ Anybody can legally call themselves an accountant. But when you’ve got a qualification like AAT it shows you’ve the skills to back up your claims.

In the last year as I was doing my finals, I started senioring many auditing jobs at the office, and since I’ve qualified I’m now an audit senior.

The key benefits of full AAT membership are about professional reputation and credibility. With membership I was given many exemptions for my chartered studies and it also meant that I was given additional responsibilities at work as my employer recognised my achievement.”

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WhAT’s nexT?For more detailed information on fees, training providers, the qualification and student membership visit aat.org.uk/start

If you’d prefer to speak to someone directly, call us on (0)20 3735 2400 Lines are open 09.00 to 17.00, Monday to Friday.

Follow our AAT advisors on Twitter @studyAAT

Documents

AAT 2014 Student Guide