AAT Level 4 Diploma in Professional Accounting

Course Overview

This qualification covers complex accounting and finance topics and tasks leading to students becoming confident with a wide range of financial management skills and applications. Students will gain competencies in drafting financial statements for limited companies, recommending accounting systems strategies and constructing and presenting complex management accounting reports.

Study the Level 4 Diploma in Professional Accounting to master complex accounting tasks and qualify for senior finance roles, as well as AAT full membership.

The jobs it can lead to:

• Accounts payable and expenses supervisor
• Assistant financial accountant
• Commercial analyst
• Cost accountant
• Fixed asset accountant
• Indirect tax manager
• Payroll manager
• Payments and billing manager
• Senior bookkeeper
• Senior finance officer
• Senior fund accountant
• Senior insolvency administrator
• Tax supervisor
• VAT accountant

Entry Requirements:

Students can start with any qualification depending on existing skills and experience. For the best chance of success, we recommend that students begin their studies with a good standard of English and maths.

Course Content:

Applied Management Accounting (mandatory):

This unit allows students to understand how the budgetary process is undertaken. Students will be able to construct budgets and then identify and report on both areas of success and on areas that should be of concern to key stakeholders. Students will also gain the skills required to critically evaluate organisational performance.

Learning outcomes:
• Understand and implement the organisational planning process.
• Use internal processes to enhance operational control.
• Use techniques to aid short-term and long-term decision making.
• Analyse and report on business performance.

Drafting and Interpreting Financial Statements (mandatory):

This unit provides students with the skills and knowledge for drafting the financial statements of single limited companies and consolidated financial statements for groups of companies. It ensures that students will have a proficient level of knowledge and understanding of international accounting standards, which will then be applied when drafting the financial statements. Students will also have a sound appreciation of the regulatory and conceptual frameworks that underpin the preparation of limited company financial statements.

Learning outcomes:
• Understand the reporting frameworks that underpin financial reporting.
• Draft statutory financial statements for limited companies.
• Draft consolidated financial statements.
• Interpret financial statements using ratio analysis.

Internal Accounting Systems and Controls (mandatory):

This unit teaches students to consider the role and responsibilities of the accounting function, including the needs of key stakeholders who use financial reports to make decisions. Students will review accounting systems to identify weaknesses and will make recommendations to mitigate identified weaknesses in future operations. Students will apply several analytical methods to evaluate the implications of any changes to operating procedures.

Learning outcomes:
• Understand the role and responsibilities of the accounting function within an organisation.
• Evaluate internal control systems.
• Evaluate an organisation’s accounting system and underpinning procedures.
• Understand the impact of technology on accounting systems.
• Recommend improvements to an organisation’s accounting systems.

Business Tax (optional):

This unit introduces students to UK taxation relevant to businesses. Students will understand how to compute business taxes for sole traders, partnerships and limited companies. They will also be able to identify tax planning opportunities while understanding the importance of maintaining ethical standards.

Learning outcomes:
• Prepare tax computations for sole traders and partnerships.
• Prepare tax computations for limited companies.
• Prepare tax computations for the sale of capital assets by limited companies.
• Understand administrative requirements of the UK’s tax regime.
• Understand the tax implications of business disposals.
• Understand tax relief, tax planning opportunities and agent’s responsibilities in reporting taxation to HM Revenue & Customs.

Personal Tax (optional):

This unit provides students with the fundamental knowledge of the three most common taxes that affect taxpayers in the UK: Income Tax, Capital Gains Tax and Inheritance Tax. With this knowledge students will be equipped to not only prepare the computational aspects of taxes, where appropriate, but also appreciate how taxpayers can legally minimise their overall taxation liability.

Learning outcomes:
• Understand principles and rules that underpin taxation systems.
• Calculate UK taxpayers’ total income.
• Calculate Income Tax and National Insurance contributions (NICs) payable by UK taxpayers.
• Calculate Capital Gains Tax payable by UK taxpayers.
• Understand the principles of Inheritance Tax.

Audit and Assurance (optional):

This unit aims to give a wider understanding of the principles and concepts, including legal and professional rules of audit and assurance services. The unit will provide students with an awareness of the audit process from planning and risk assessment to the final completion and production of the audit report. Students will also get a practical perspective on audit and assurance, with an emphasis on the application of audit and assurance techniques to current systems.

Learning outcomes:
• Demonstrate an understanding of the audit and assurance framework.
• Demonstrate the importance of professional ethics.
• Evaluate the planning process for audit and assurance.
• Review and report findings.

Cash and Financial Management (optional):

This unit focuses on the important of managing cash within organisations and covers the knowledge and skills to make informed decision on financing and investment in accordance with organisational policies and external regulations. Students will identify current and future cash transactions from a range of sources, learn how to eliminate non-cash items and use various techniques to prepare cash budgets.

Learning outcomes:
• Prepare forecasts for cash receipts and payments.
• Prepare cash budgets and monitor cash flows.
• Understand the importance of managing finance and liquidity.
• Understand the way of raising finance and investing funds.
• Understand regulations and organisational policies that influence decisions in managing cash and finance.

Credit and Debt Management (optional):

This unit provides an understanding and application of the principles of effective credit control systems, including appropriate debt management systems. Students will be introduced to techniques that can be used to assess credit risks in line with policies, relevant legislation and ethical principles.

Learning outcomes:
• Understand relevant legislation and contract law that impacts the credit control environment.
• Understand how information is used to assess credit risk and grant credit in compliance with organisational policies and procedures.
• Understand the organisation’s credit control processes for managing and collecting debts.
• Understand different techniques available to collect debts.