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What is AAT level 2 qualification in Accounting

What is AAT level 2 qualification in Accounting

What is AAT Level 2?

Anyone who completes the AAT level 2 accounting qualification will obtain a solid grasp of accountancy. FC training will give you accountancy instruction and work experience, allowing you to get the accounting and job-ready skills you'll need to get started as an accountant in any field. The AAT level 2 accounting qualification will provide you with a good accounting and finance administration foundation, preparing you for entry-level to junior accounting positions. 

As our professional accounting tutors/accountants help and coach you in preparation for the AAT tests and examinations, you will become fluent in basic double-entry bookkeeping and costing principles. As our trained professional accountants oversee your work, you will experience numerous accounting software. Future Connect training will provide you with the best accounting job experience as you deal with real customer files, enhancing your accounting knowledge and increasing your employability.

Syllabus for AAT level 2 in accounting

The level 2 AAT qualification will prepare you for a career in business, finance, or professional accounting. You'll learn how to conduct double-entry accounting bookkeeping and basic costing, as well as how to read sales, buys, and general ledgers. This certification requires the completion of five required units.

You will learn how to utilise accounting software during the course, which will help you acquire professional abilities in accounting and finance. The AAT level 2 accounting qualification syllabus comprises five compulsory courses that cover a variety of basic accounting and financial skills:

Transactions in Bookkeeping

You will learn about double-entry bookkeeping, methods, and procedures in the first unit of this AAT level 2 accounting certificate. You will become familiar with several accounting books to handle and record financial records, such as the primary entry and ledger.

The conclusion of this unit will obtain the following learning outcomes:

  1. Understanding transactions in an accounting environment
  2. Customer transactions are processed.
  3. Supplier transactions are processed.
  4. Payments and receipts are processed.
  5. Transactions are processed from ledgers to the trial balance.

Controls for bookkeeping

You will learn about the operations of a journal, control accounts, and reconciling balances in this unit. It also involves the implementation of revisions and, if necessary, re-drafting. You'll also learn about the financial system, which will include the following topics:

  1. Understanding the purpose of control accounts and journals, as well as how to utilise them
  2. Control accounts must be maintained and used.
  3. Keeping and utilising a journal
  4. It would help if you reconciled Bank statements and the cash book.
  5. Invoices from suppliers are processed, and payments are calculated.
  6. Credit note processing and payment calculation
  7. Understanding the standards for document preservation and storage in the banking industry

Costing Elements

This unit emphasises the importance of a costing system as a source of information for internal management decision-making and the importance of learning the outward perspective of providing relevant information to managers who use it to aid in decision-making, control, and business planning. It entails gathering and comparing data on actual performance with budgets.

You'll also learn to categorise costs, code transactions, and produce product or service unit costs utilising a range of cost material, labour, and overhead strategies. Students will also work with the budget management system and compare actual expenses to budgeted costs to see any negative or positive differences.

This unit introduces the High-Low technique, which will serve as a foundation for developing skills and knowledge in succeeding units where marginal costing will enhance managerial decision-making. The other topics covered are understanding overhead as a cost component and constructing a substantial unit product cost through machine hours, labour hours, and per-unit cost.

The costing aspects unit will provide you with a basic introduction to costing and equip you with a firm foundation in the information and abilities you'll need for more advanced costing and management accounting courses like:

  1. Management Accounting at a higher level
  2. Professional level and costing Accounting for Management
  3. Budgeting

Making Use of Accounting Software

This chapter will show you how to make and read reports and what they are for. FC training will give you free access to specialised accounting software for learning and assessment as part of your study. This unit's learning outcomes include:

  1. Creating documents
  2. Transactions of sales and purchases are processed.
  3. Install the accounting software.
  4. Bank and cash transactions are processed.
  5. End the term with ordinary duties.

Work in Finance Efficiently

This unit will help you acquire the professional abilities and behaviours you'll need to succeed in the finance function. As a financial professional, you'll need talents that go beyond math. This subject will assist you in preparing for the advanced level Ethics for Accountants exam in subsequent levels. The following are examples of learning outcomes:

  1. Understanding how a company's finance department works
  2. In the financial industry, personal skill development is used.
  3. Effectively produce work
  4. Understanding corporate social responsibility (CSR), ethics, and sustainability are essential.

Course evaluations

Your knowledge and abilities will be assessed by AAT using a combination of unit and synoptic assessments.

Assessment of the Units

The unit evaluation will put your knowledge and abilities to the test you learned while studying that unit. The evaluations are as follows:

On-demand service (mostly throughout the year)

  1. At AAT-approved testing locations: Future Connect is an AAT-approved testing location.
  2. Exam marking via computer, with results accessible within 24 hours
  3. Where necessary, AAT evaluators will grade your evaluations.

An overview of synoptic assessment

After all of the previous unit evaluations have been completed, the synoptic assessment will take place. It will put your knowledge and abilities from the previous modules to the test.

Outcomes

Within 24 hours, the results of your computerised assessment will be available in your MYAAT account. The results of evaluations marked by an AAT assessor are expected to be accessible later. The results of the examinations are published on the AAT website.

Grading

To be granted the AAT Level 2 Foundation Certificate in Accounting, you must obtain a least 70% competency level in each unit assessment and synoptic exam.

Resits

You will be allowed to retake an assessment to improve your grade. Your final step will be calculated by AAT using your top marks. You may take the exams again if you like, and there are no workplace engagement restrictions for fee-paying students.

The entry requirements for AAT Level 2

To study AAT Foundation, you don't need any prior accounting expertise. There are no prerequisites for admission, but you must have strong math, IT, and English abilities, as well as a willingness to study. You will be excluded from the first two units of this level if you have achieved the AAT Foundation Certificate in Bookkeeping (FCIB) short qualification (Bookkeeping Transactions and Bookkeeping Controls). If you have a university degree in accounting or a related field, we recommend that you pursue ACCA, CIMA, or ACA immediately.

Work Effectively 

As a financial professional, you'll need talents that go beyond math. This chapter will help you acquire the professional abilities and behaviours you'll need to succeed in the finance function. Beyond the finance role, this section focuses on communication and interpersonal skills inside an organisation. It also emphasises the necessity of information confidentiality, data security, and the fundamentals of corporate social responsibility. Students will learn how to act to promote sustainability and ethical behaviour.

These units will assist you in preparing for the advanced level Ethics for Accountants exam in subsequent levels. The following are examples of learning outcomes:

  1. Understanding how a company's finance department works
  2. In the financial industry, personal skill development is used.
  3. Effectively produce work
  4. Understanding corporate social responsibility (CSR), ethics, and sustainability are essential.

Opportunities for advancement

The Level 2 AAT qualification will enable you to explore career options in accounting and finance. You'll be qualified to take on the following responsibilities:

  1. Assistant in Accounting
  2. Administrator of Accounting
  3. Bookkeeper 
  4. Clerk, Accounts Payable
  5. Clerk for Accounts Receivable
  6. Clerk for the Purchase Ledger
  7. Clerk for the Sales Ledger

After completing this programme, you can continue your studies towards the AAT Level 3 Advanced Diploma in Accounting.

Conclusion:

The AAT qualification level 2 is the first step in the AAT programme. What better place to begin your accountancy career than with the UK's premier AAT training provider? The most critical stage of all is to complete Level 2 AAT. The AAT certificate level will teach you all of the accounting fundamentals. Furthermore, it will provide a solid basis for your future career in accounting. As a result, you'll be better prepared to succeed in the subsequent stages of the AAT certificate. In other words, you will struggle with the following levels of the AAT trip if you do not complete level 2 AAT and master the foundations. Because you'll need the information from AAT level 2 to expand on it in future courses, this is the case.

FAQs

Q.1: What is the course's duration?

The AAT Level 2 typically takes 12 months to complete. However, it may be finished in as little as six months if you study for 6-8 hours per week.

Q.2: What is the AAT Level 2 equivalent?

This Level 2 certification is comparable to GCSE coursework.

Q.3: Is Accounting Level 2 a difficult course?

It is the most difficult unit in the AAT certification, but it is also crucial.