So, what does AAT level 2 consist of?
AAT level 2 is made up of 5 units:
- Bookkeeping transactions
- Bookkeeping controls
- Elements of costing
- Foundation level synoptic
- Using accounting software
You will learn each unit, one at a time and sit an exam at the end of each unit, before moving on to the next unit.
To gain the full AAT level 2 qualification, you will need to sit 5 exams, one for each of the above units.
Bookkeeping transactions
This teaches you the double entry bookkeeping system (debits and credits).
It teaches you about the different types of accounts (expense, income, asset, liability), how to identify them and what you need to do with them.
This is a tough unit but it is the most important unit in the entire AAT qualification.
This unit will get you started on your AAT journey and it will set you up for the rest of the qualification.
Bookkeeping controls
This builds on what you learned in bookkeeping transactions.
This unit teaches you about how the control accounts are used, how to identify any errors and how to make journal entries to correct any errors or make any adjustments.
Elements of costing
This is the foundation of management accounting.
It will teach you about how to value inventory, how to classify costs and how to deal with overheads.
This is another important unit.
If you can learn these vital techniques, it will set you up for the later management units at level 3 and at level 4.
Foundation level synoptic
This teaches you a subject called “working effectively in finance”.
This will help explain the ins and outs of working in an office environment. It will teach you good working practices and include a bit of professional ethics.
This exam is unique as it will also include questions from the first three units (bookkeeping transactions, bookkeeping controls and elements of costing).
This will test that you have retained the knowledge from the prior three units.
This exam also includes a written task. You will need to show that you understand a subject by explaining it in written form.
Using accounting software
This is the final unit at level 2.
This will teach you how to use a piece of accounting software.
You will learn how to navigate the software, how to input data correctly and how to prepare reports to show the data in a meaningful way.
This is an enjoyable unit as it is all done on a software package. It is important to learn as most businesses will now be using some type of accounting software system.
