Accounting Courses and Subjects Explained

AAT or Automated Applied Taxation is a skill test that is part of the Accountancy qualification process. This test is taken as an applicant prepares to apply for a tax credit. The test covers a range of subjects in depth, which includes current and previous years accountancy practices, professional ethics, professional skills and the core areas of income taxation and personal affairs. At level two, the test covers the core areas of income tax, corporate tax and national insurance payer responsibilities aat level 2.


AAT Level 2 is basically the beginning point to training for the accountant profession. This level gives a basic, fundamental understanding of the discipline as individuals seek to qualify to work in accountancy, or those already within the industry themselves. Level two covers topics from basic bookkeeping to accountancy, with both computerised and manual methods used. It also covers the application of principles to real life accounting situations.


As a student progresses through the at level 2, they will be taught how to design cost accounting systems, using both mathematical and practical methods. They will learn how to conduct financial analysis, which involves costing, cash flow and other economic concepts. Learning about the relationships between these concepts will help students understand the concepts involved in costing effectively. Some of these include the use of internal/external models, time value, external/internal rate of profit, discounted cash flow and capital budgeting aat level 3.


At a higher level of qualification, students may choose to specialize in a particular area of accounting. Courses offered at this level include international business taxation, management and leadership, private and public accountancy, forensic accounting and more. As a student progresses through their at level 2, they may also choose to enroll in a course which deals with managing risk using a company’s insurance policies. This course is called risk management and is usually offered at the junior college or by some accounting schools. This is often seen as a preparation course for a foundation degree in finance or accounting.


Earning an aat level 2 certificate, which is a compulsory qualification, involves three separate sectors. These sectors are more focused on accounting and reporting, control, and policy. Some aat qualification providers combine these three subjects together, called modules. The modules could be separated further, but usually this is not done. Therefore it is important to ensure that the courses you are choosing to study cover all the subjects that are relevant to your future job.


There are some other options which may be open to you at an advanced level of AAT qualification. For example, in Scotland, some at level 2 providers offer a choice between an accountancy exam, which is a separate exam, and then a foundation degree in accountancy. If you choose the accountancy exam, however, you must still have your foundation degree in accounting. However, the accountancy exam, which is usually a longer one, gives you the option of gaining a foundation in auditing, which will give you more skills in financial matters. It may be worth considering this option if you have a keen interest in an accounting profession but don’t have a particularly strong background in it yet.

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