AAT Level 3 Advanced Diploma in Accounting

Thinking of pursuing a career in accountancy? Take a step forward and start your journey to becoming a qualified accountant. The AAT level 3 diploma in accounting is for individuals with a sound understanding of accounting processes or have some accounting experience. KBM will help you develop your accounting skills, allowing you to work in a variety of accounting roles.

Studying at KBM

The AAT level 3 diploma will prepare your career towards the professional accounting industry. This course has a wide range of dynamic accounting processes, including preparation of reports, returns and maintenance of cost accounting statements.

KBM will provide you with dedicated support during your studies. You will work on actual client files in a practical scenario, training you to become a capable and competent accountant, with the ability to work independently in any organisation. You will also learn a variety of accounting software under the supervision of certified professional accountants.

Success factors at KBM

KBM not only help in studies but also instrumental in passing exams and assessments. Some of the unique success factors include that KBM:

  • is an approved AAT training provider
  • has approved assessment venue by the AAT
  • has collaboration with Chartered Certified Accountants & Registered Auditors firm
  • has a 97% pass rate by the first attempt
  • has multiple locations/centres across London, including Park Royal, Barking, Canary Wharf, and Elephant & Castle. We also have a delivery centre at Radclyffe House, Birmingham.
  • will provide you with course books, exam kit and flashcards
  • will give you full support in gaining MAAT membership
  • will provide you with a free Sage 50 and Xero Advisor certification
  • will provide you with free practical training on Sage 50 using actual business documents
  • will help you in preparation of CV and Interview and Work Placement
  • will install the free licensed software on your laptop

Distance learning options

KBM offers an option for distance-learning for those who prefer independent study at their own pace and time towards their preferred completion date.

This would be ideal for individuals who require the flexibility to suit their daily schedule.

KBM will provide the study and practice materials in line with the AAT requirements, and our tutors will support through the online student portal during the tenure of the program.

Entry requirements

It is recommended that our students to have previous experience in accounting and finance or have an accountancy background equivalent to the AAT Level 2 Foundation Certificate.

We will recommend starting with the AAT level 2 Foundation certificate if students do not have any previous accounting background or experience. A good standard of literacy in English and math are required. 

Registration with the AAT will be required before starting this course. The AAT will provide an AAT student number required for the exams/assessments.

Progression opportunities

The AAT level 3 qualification in accounting will enhance your employability potential, allowing you to perform in across a broad range of roles in accounting and finance. Some of these roles include:

  • Expenses Supervisor
  • Credit Controller
  • Finance Officer
  • Finance Assistant
  • Advanced Bookkeeper
  • Accounts Assistant
  • Accounts Payable Assistant
  • Accounts Receivable Assistant

Upon completion of this programme, you have the option to progress your studies towards the AAT Level 4 Professional Diploma in Accounting.

Average salary range

Depending on experience, accounting roles may vary averaging between £25,000 to £35,000 per annum as you progress with relevant experience

Duration

The AAT Level 3 (Advanced Diploma in Accounting) generally takes around 12 months but may complete it as quickly as 6 months with an average of 6-8 hours of study weekly.

AAT accounting level 3 syllabus

The AAT Level 3 course in accounting will introduce you to accounting principles, concepts, and accounting rules utilised in an intermediate level of management or financial accounting.

Through the course, you will learn about financial and accounting processes, understand business issues relating to indirect tax (VAT), management accounting costing techniques and ethical practices. Though the course, you will learn the use of accounting software, which will develop your professional skills to work effectively in accounting and finance.

The AAT level 3 accounting qualification syllabus includes a variety of advanced accounting and finance skills with six mandatory units:

  • Advanced Bookkeeping
  • Management Accounting: Costing
  • Indirect Tax (VAT)
  • Ethics for Accountants
  • Spreadsheets for Accounting
  • Preparation of Final Accounts

Advanced Bookkeeping

This unit will integrate the foundation skills with advanced bookkeeping and managing non-current assets records. It includes preparation and production of final accounts for unincorporated companies while further developing the student’s bookkeeping skills. Students will gain familiarity with the ledger accounts and daybooks and will be introduced the accruals basis of accounting to underpin adjustments including prepayments, accruals, accounting for irrecoverable and the period end valuation of inventory and doubtful debts. Students will then draw up a trial balance by using adjustments and extending it to identify the profit or loss for the period.

The learning outcomes of this unit will include:

  • Application of advanced double-entry bookkeeping principles
  • Implementing acquisition and disposal of non-current assets procedures
  • Preparing and recording depreciation calculations
  • Capability of period-end adjustments recordings
  • Extending and producing a trial balance

Final Accounts Preparation

This unit will prepare students to be proficient in drafting accounts for partnerships and sole traders. It introduces regulations governing company accounts while being conscious of ethical issues and how to report information correctly. Students will identify the different kinds of companies that need preparation of financial statements and understand why these statements are essential to business stakeholders. Students will learn to recognise special accounting requirements and compliances for partnerships while being aware of regulations and legislation governing financial statements.

This unit will also introduce terminology and formats for organisations' financial statements in relation to the International Financial Reporting Standards (IFRS) terminology utilised by AAT. Learning outcomes will include:

  • Distinguish financial recording and reporting requirements of different types of companies
  • Explaining the final accounts requirement and ethical principles
  • Preparation of accounting records from partial information
  • Produce accounts for Sole Traders and Partnerships
  • Identifying differences in preparing accounts for a sole trader and a limited company
  • Application of rules and legislations

Management Accounting: Costing

This unit introduces how a company uses financial information to help its management make important decisions. This unit builds upon previous syllabus, the Elements of Costing (foundation level), to prepare company budgets and reports on performance. Students will learn to collect, analyse and report cost and revenue information to assist in managerial control, decision making and planning.

This unit will provide a deep understanding on cost management in companies, and why different companies treat costs differently. It will equip you with the techniques needed to deal with:

  • Direct costs
  • Revenues
  • Treatment of short-term overhead costs
  • Inventory control methods
  • Allocation and apportionment of indirect cost
  • Costing of direct labour
  • Overhead absorption calculation

Learn the decision-making techniques using both short-term and long-term estimation of revenues and cost, which includes:

  • Preparing estimation of unit costs and profit changes
  • Segmentation of profit or loss (products or services)
  • Limiting factor for decision making
  • Reconciliation of budgeted and actual costs and revenues
  • Appraisal on capital investment
  • Analysing break-even: cost volume profit (CVP)

From the learning outcome, you will:

  • Understanding of the use and purpose of management accounting
  • Applying techniques needed for dealing with cost
  • Apportion costs according to company requirement
  • Analysing and reviewing deviations from budget and report
  • Applying management accounting techniques to assist in decision making

Indirect Tax (VAT)

This is an advanced unit on indirect tax/value-added tax (VAT) which covers the preparation and submission of VAT returns to HMRC. Keep your employers and clients compliant within the regulation and practices on indirect taxes on sales and purchases. You will perform routine and non-routine VAT tasks, applying VAT regulations from an ethical perspective and carry out your work with objectivity, integrity, and professional competence.

KBM will help you with the completion of the VAT returns as you understand the implications of failing a VAT return, late submission of returns, and late payment or non-payment of VAT, inaccuracy, corrections and consequences of omission, which will help you understand the sanctions and penalties of the relevant tax authority/HRMC. This unit will also cover VAT registration and de-registration, as well as the need to monitor sales closely to avoid any breach of regulations.

The learning outcomes of this unit include:

  • Understand and apply VAT legislation requirements
  • Accurate completion of VAT returns and timely submission
  • Understanding of the implications for the business of errors, omissions and late filing and payment
  • Reporting VAT-related information within the company with regulatory and organisational requirement

Ethics for Accountants

This unit will cover the principles of ethical working and ethical behaviour at work, as well as taking action to illegal acts and unethical behaviours. It will help individuals to:

  • Work according to the ethical code for accountants and accounting technicians
  • Ensuring that people have confidence in accounting practices and processes
  • Protecting legal liability and professional reputation.
  • Upholding principles of sustainability

It is important to understand the core elements of the ethical codes for accountants as demonstrated in the AAT Code of Professional Ethics and accounting technicians. This unit will focus on the ethical principles of objectivity, integrity, and professional competence. Students will also learn about professional behaviour, confidentiality, and due care as they judge ethical situations and apply these principles at work:

  • Conceptual framework of principles
  • Threats and safeguards/in ethical code
  • Process for ethical conflict resolution

This will help individuals the importance of ethical and organisational values such as transparency, honesty, and fairness. Applying a systematic approach to ethical problems will allow one to analyse issues and judge ‘right’ and ‘wrong’ behaviours and identify the alternative course of action to resolve ethical problems with the correct response. Money laundering regulations will also be covered and how it applies within the responsibilities of the accountant.

Below summarises the learning outcome for this unit:

  • Understanding of how to act ethically
  • Understanding of the relevance to work of the ethical code for accountants and accounting technicians
  • Recognising how to act ethically in an accounting role
  • Identification of appropriate action to unethical behaviour or illegal acts

Spreadsheets for Accounting

This unit will be focused on the development and enhancement of spreadsheets skills, learning how to accurately enter, analyse and present information to help make informed accountancy decisions. The skills and knowledge gained will integrate spreadsheet use within other advanced level accounting subjects.

As an accounting technician, the use of spreadsheets is essential to analyse financial data, to be presented in a clear and straightforward manner accurately. This unit will demonstrate the manipulation of data, calculations, preparation of financial statements, reporting, analysis, budgeting, decision-making, and forecasting. Upon completion, students will be capable of performing complex calculations through the following skills:

  • Formulas
  • Functions
  • Data analysis tools
  • Sorting and filtering

After analysis, data will then be presented using various methods, such as structured spreadsheets, pivot tables and charts. The learning outcome of this unit include:

  • Designing and structuring suitable spreadsheets as per customers' needs
  • Using spreadsheet software for recording, organising and data formatting
  • Using relevant tools to analyse and manipulate data
  • Using software tools accuracy verification and data protection
  • Using tools and techniques for preparation and reporting accounting information

Course assessments

AAT will assess your knowledge and skills through a combination of unit and a synoptic assessment.

Assessment of units

The unit assessment will test your knowledge and skills gained in the study of that unit. The assessments are:

  • Available on demand (mostly throughout the year)
  • At AAT approved assessment venues. (KBM is an approved assessment venue.)
  • Computerised exam marking, results available within 24 hours
  • AAT assessors will mark your assessments where required

Synoptic assessment

The synoptic assessment will occur at the end once the other unit assessments have been completed. It will test a variety of your knowledge and skills gained from the other units.

Getting your results

Results of your computerised assessment will be available within 24 hours in your MYAAT account. You can expect the result of assessments marked by AAT assessor to be available at a later date. AAT publishes the exams result on their website (timescales may vary).

Grading

You will need to achieve a minimum 70% competency level in each of the unit assessment and the synoptic assessment to be awarded the AAT Level 3 Advanced Diploma in Accounting qualification.

Resits

You will have an option to resit for an assessment to improve your grading. AAT will calculate your final grade based on your highest marks. There are no restrictions on the number of times you may attempt the assessments, and there will be no employer engagement requirements for any fee-paying students.

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