AAT Level 2 Certificate in Accounting

Key Facts

• Attendance: Half-day classes or online learning with tutor support.
• Duration: Nine months.
• Next start date: The next classroom attendance starts in September 2025. Online learning students can start at anytime.
• Location: Classroom lessons are held in Godmanchester, near Huntingdon.

Course delivery details:

Entry Requirements

There are no formal academic entry requirements for the AAT Level 2 Certificate in Accounting. However, competency in basic maths and English skills is necessary.

Course Content

This accounting course has two study method options: classroom lessons or online learning, both with regular tutorial support. In addition to your classroom/online learning, students will be expected to study for an additional eight hours per week.

The following four units will be studied:

Introduction to Bookkeeping

This unit provides students with an understanding of manual and digital bookkeeping systems, including the associated documents and processes. Students will learn the basic principles that underpin the double-entry bookkeeping system and will learn that digital accounting systems are automating some of the stages in the process

• Principles and procedures related to processing business transactions, financial documents and payments for customers and suppliers.
• Developing skills in processing ledger transactions and preparing an initial trial balance.

Principles of Bookkeeping Controls

This unit builds on the knowledge and skills acquired from studying Introduction to Bookkeeping and explores control accounts, journals and reconciliations. It takes students through a number of processes used in bookkeeping that help verify and validate the entries made. These processes enable the student to understand the purpose of control accounts and associated reconciliations. Students will also understand the use of the journal to the stage of redrafting the trial balance, following initial adjustments.

• Maintenance and reconciliation of a cash book by accurately entering receipts and payments, balancing and reconciling with bank statements.
• Knowledge and understanding of the UK banking system and related organisational activities.
• Petty cash transactions and the importance of the Journal as a primary accounting record.
• Maintaining control over debtors and creditors, aided by preparation and use of debtor and creditor control accounts.
• Non-standard bookkeeping transactions and double-entry bookkeeping records.

The Business Environment

The business environment is dynamic and is changing considerably as the digital age progresses to facilitate the global nature of business. It is essential that students are aware of the impact that this environment has on organisations, from sole traders to large companies operating in local, national and global markets, and that they are equipped with the knowledge and skills to enable them to work effectively.

This unit provides knowledge and understanding of key business concepts and their practical application in the external and internal environment in which students will work. Students will gain an understanding of the legal system and principles of contract law and an appreciation of the legal implications of setting up a business and the consequences this may have. Wider issues impacting businesses will be considered, including the global economic environment in which it operates, how governments impact upon it and the competitive nature of the global economy.

• Developing transferable skills and effective working in an accounting environment.
• Teamwork skills and the ability to work independently.
• Demonstrating workplace-ready standards of literacy and numeracy.

Principles of Costing

This unit gives students an introduction to the principles of basic costing and builds a solid foundation in the knowledge and skills required for more complex costing and management accounting. Students will learn the importance of the costing system as a source of information that allows management to plan, make decisions and control costs. Students should recognise the key differences from a business perspective between costing and financial accounting.  Students will learn a range of techniques to cost materials, labour and overheads to establish the unit cost of a product or service, and this will include understanding and applying codes. Students will learn how to classify costs and will understand how different classifications of cost can be used for internal management decision making.

• Cost recording systems within an organisation and how best to respond to requests for information relating to costs and expenditure.
• Recording and extracting information, and using a costing system to provide information for management.

Benefits of the Level 2 Certificate in Accounting

Working in accountancy requires good communication skills, information technology (IT) skills and an understanding of the business environment, as well as an understanding of daily finance/accounting functions. The purpose of this qualification is to ensure that students are well rounded and well prepared to progress into a career in business, finance or professional accountancy, or into further education.

A student completing this qualification will develop accountancy skills in double-entry bookkeeping and basic costing, as well as an understanding of purchase, sales and general ledgers. Students will learn an understanding of accounting software and develop the professional skills and behaviours needed to contribute effectively in the workplace. Working in accountancy requires good communication skills, IT skills and an understanding of the business environment, all of which are covered by this qualification.

Assessment

Computer based exams will be undertaken. As we are an AAT accredited exam centre, these exams can be taken at the college without the need to travel to an external exam centre.