AAT Level 4 Diploma in Accounting

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About the course

With the AAT Level 4 Diploma, you’ll master financial team leader skills, including financial statements for limited companies, complex management skills and specialist learning skills choosing from tax, credit control and cash management options.

AAT Level 4 Diploma in Accounting is the advanced level of the AAT Accounting Qualification. It offers technical training in accounting and its main purpose is to enhance the skills developed in the intermediate level.

At this advanced level, you'll look at financial team leader skills, including financial statements for limited companies, complex management skills and specialist learning areas. Mandatory Units

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


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 (project unit)

Understand the role of accounting within an organisation
Understand the importance and use of internal control systems
Evaluate the accounting system and identify areas for improvement
Conduct an ethical evaluation of the accounting systems
Conduct a sustainability evaluation of the accounting system
Make recommendations to improve the accounting system

Note: This project includes the submission of a 4000-5000 word report based on an AAT case-study scenario.

Optional Units (choose two of the following)

Cash Management

Using statistical techniques and financial information to prepare income and expenditure forecasts
Preparing cash to monitor an organisations 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

Business Tax

Completing Corporation Tax returns and supporting computations for incorporated businesses
Understanding the 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

You can choose your optional units once you have begun your studies and your course tutor will be happy to help guide you on this decision.

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