The Association of Accounting Technicians (AAT) is one of the most popular accounting qualifications out there. But for people new to the qualification, it can be hard to work out which level to start at.
AAT is made up of three levels: AAT Level 2 Certificate in Accounting, AAT Level 3 Diploma in Accounting, Level 4 Diploma in Professional Accounting, and the AAT Bookkeeping Qualifications (short courses that can be taken separately).
You don’t need any previous qualifications or accountancy experience to begin studying AAT. And anyone, from school leavers to career changers, can start the qualification.
Here’s an overview of each level, and the experience required.
AAT Bookkeeping Qualifications
There are three bookkeeping qualifications, Level 2 Certificate in Bookkeeping (CIB2) and Level 3 Certificate in Bookkeeping (CIB3). If you pass all three qualifications, you can gain AAT Professional Bookkeeper status.
You don’t need any previous accounting experience to take a Bookkeeping course, just be willing to learn new skills.
If you want to start AAT from the AAT Level 3 Diploma in Accounting, it’s advisable to take one of the bookkeeping courses as you will need a good knowledge of Double Entry Bookkeeping.
AAT Level 2 Certificate in Accounting
The AAT Level 2 Certificate in Accounting covers the basic principles of accountancy, and is your starting point if you’ve never studied accountancy before. You don’t need any prior experience to start at Level 2, but you will need good maths, IT and English skills.
You’ll learn the basic principles of accountancy, such as double-entry bookkeeping, costing and preparing financial statements, as well as how to use accountancy software. Most people complete this level in around six months to a year.
If you’ve completed the AAT Level 2 Certificate in Bookkeeping, you’ll be exempt from completing the first two units of this level (Introduction to Bookkeeping and Principles of Bookkeeping Controls).
The AAT Level 2 Certificate in Accounting includes the following subjects/assessments:
- Introduction to Bookkeeping (ITBK)
- Principles of Bookkeeping Controls (POBC)
- Principles of Costing (PCTN)
- The Business Environment (BESY) - Synoptic Assessment
Once you’ve passed this level, you could work in roles such as an accounts payable clerk, accounts officer, payroll administrator and a finance assistant. The average salary for someone who is AAT Level 2 qualified in the UK is £25,000 depending on factors such as experience, region and workplace.*
AAT Level 3 Diploma in Accounting
The AAT Level 3 Diploma in Accounting builds on the knowledge gained in AAT Level 2. If you work in accounts or have studied accountancy before, you may be able to start at this level.
Ideally, to start at the AAT Level 3 Diploma in Accounting, you should have passed AAT Level 2. You may be eligible for relevant exemptions if you’ve been working in an intermediate accounts role, or have achieved relevant A Levels.
If you want to start at AAT Level 3, there is an assumption that you have a good knowledge of Double Entry Bookkeeping, so gaining a Level 2 or Level 3 AAT Certificate in Bookkeeping is a good idea.
With AAT Level 3, you’ll learn complex accounting techniques, and master a number of accounting disciplines including: financial processes, advanced bookkeeping, final accounts and ethical practices for accountants. Most people complete this level in around six months to a year.
The AAT Level 3 Diploma in Accounting includes the following subjects/assessments:
- Financial Accounting: Preparing Financial Statements (FAPS)
- Management Accounting Techniques (MATS)
- Tax Processes for Businesses (TPFB)
- Business Awareness (BUAW)
After completing this level, you could become a finance officer, assistant accountant or an advanced bookkeeper. The average salary for someone who is AAT Level 3 qualified in the UK is £35,000 depending on factors such as experience, region and workplace.*
AAT Level 4 Diploma in Professional Accounting
The AAT Level 4 Diploma in Professional Accounting is the final level of AAT, teaching you more complex accounting theory, and you can choose two specialist subjects to focus on. You will need to have completed the AAT Level 3 Diploma in Accounting to start at this level.
At AAT Level 4 you’ll learn about budgeting, management accounting, preparing financial statements, accounting systems, and tax.
The AAT Level 4 Diploma in Professional Accounting is made up of three compulsory subjects/assessments and then you can choose two optional subjects:
Compulsory subjects/assessments:
- Drafting and Interpreting of Financial Statements (DAIF)
- Applied Management Accounting (AMAC)
- Internal Accounting Systems and Controls (INAC)
Optional units (you must choose two):
- Business Tax (BNTA)
- Personal Tax (PNTA)
- Audit and Assurance (AUDT)
- Cash and Financial Management (CSFT)
- Credit and Debt Management (CRDM)
You could work in exciting jobs such as a forensic accountant, tax manager, accountancy consultant and finance analyst. The average salary for someone who is fully AAT qualified in the UK is £44,000 depending on factors such as experience, region and workplace.*
Ready to start your AAT journey?
We hope you have more of an idea where to start your AAT journey. If it sounds like the right qualification for you, have a look at our AAT pages for more information.
* AAT Salary Survey 2023 https://www.aat.org.uk/prod/s3fs-public/assets/aat-salary-survey-2023.pdf