Level 4

Who is it for?

In this qualification you will cover higher accounting tasks including drafting financial statements, managing budgets and evaluating financial performance, as well as optional specialist units including business tax, personal tax, cash and treasury management, external auditing and credit management.

With 6 hours per week of study, this qualification will usually take between 9 months and a year to complete

The Professional Diploma in Accounting can lead to employment as:

  • Accounts Payable and Expenses Supervisor
  • Assistant Financial Accountant
  • Commercial Analyst
  • Cost Accountant
  • Fixed Asset Accountant
  • Indirect Tax Manager
  • Payments and Billing Manager
  • Payroll Manager
  • Senior Bookkeeper
  • Senior Finance Officer
  • Senior Fund Accountant
  • Senior Insolvency Administrator
  • Tax Supervisor
  • VAT Accountant

If you successfully complete this qualification and fulfil the AAT work experience requirements, you can apply for AAT full membership and achieve professional MAAT status.

You can also use the fast track route to qualify as a Chartered Accountant, or even start your own accounting practice

You can confirm that this is the correct level for you by using the AAT Skillcheck

What do I get?

You receive pre-recorded tuition and revision recordings, tutor support until midnight 7 days a week (available until you qualify), study texts, student notes and exam kits

There are 4 compulsory units as follows

Management Accounting: Budgeting

  • Prepare forecasts of income and expenditure
  • Prepare budgets
  • Demonstrate how budgeting can improve organisational performance
  • Report budgetary information to management in a clear and appropriate format

Management Accounting: Decision and Control

  • Analyse a range of costing techniques to support the management accounting function of an organisation
  • Calculate and use standard costing to improve performance
  • Demonstrate a range of statistical techniques to analyse business information
  • Use appropriate financial and non-financial performance techniques to aid decision making
  • Evaluate a range of cost management techniques to enhance value and aid decision making

Financial Statements of Limited Companies

  • Demonstrate an understanding of the reporting frameworks and ethical principles that underpin financial reporting
  • Demonstrate an understanding of the key features of a published set of financial statements
  • Draft statutory financial statements for a limited company
  • Draft consolidated financial statements
  • Interpret financial statements using ratio analysis

Accounting Systems and Controls

  • Demonstrate an understanding of the role and responsibilities of the accounting function within an organisation
  • Evaluate internal control systems
  • Evaluate an organisation’s accounting system and underpinning procedures
  • Analyse recommendations made to improve an organisation’s accounting system

Plus you choose 2 of the following 5 optional units

Business tax

  • Complete tax returns for sole traders and partnerships and prepare supporting tax computations 
  • Complete tax returns for limited companies and prepare supporting tax computations
  • Provide advice on the UK’s tax regime and its impact on sole traders, partnerships and limited companies
  • Advise business clients on tax reliefs, and their responsibilities and their agent’s responsibilities in reporting taxation to HMRC
  • Prepare tax computations for the sale of capital assets

Personal tax

  • Analyse the theories, principles and rules that underpin taxation systems
  • Calculate a UK taxpayer’s total income
  • Calculate income tax and National Insurance (NI) contributions payable by a UK taxpayer
  • Account for capital gains tax
  • Discuss the basics of inheritance tax

External auditing

  • Demonstrate an understanding of the principles of auditing
  • Demonstrate the importance of professional ethics
  • Evaluate the audited entity's system of internal control
  • Evaluate audit procedures for obtaining audit evidence
  • Evaluate the planning process
  • Evaluate audit procedures

Cash and Treasury Management

  • Use statistical techniques and financial information to prepare forecasts of cash receipts and payments
  • Prepare cash budgets and monitor cash flows within the organisation
  • Evaluate the principles of cash management within the context of regulation and government monetary policies
  • Evaluate ways of raising finance in accordance with organisational requirements
  • Evaluate ways of investing surplus funds within organisational policies

Credit Management

  • Analyse relevant legislation and contract law that has an impact on the credit control environment
  • Critically analyse information from a variety of sources to assess credit risk and grant credit in compliance with organisational policies and procedures
  • Evaluate a range of techniques to collect debts
  • Critically evaluate credit control in line with organisational policies and procedures
  • Present advice and recommendations to management on the credit control system

How will I be assessed?

There are 6 assessments in total,

5 are individual unit assessments which test a specific unit

  • Financial Statements of Limited Companies
  • Management Accounting: Budgeting
  • Management Accounting: Decision and Control
  • Plus 2 optional papers

One is a synoptic assessment which is sat after the unit assessments, and covers a mixture of the mandatory units

Financial Statements of Limited Companies

Management Accounting: Budgeting

Management Accounting: Decision and Control

Accounting Systems and Controls

Unit assessments are available on demand, whereas Synoptic assessments are only available at particular times of the year

You can achieve the following grades

  • Distinction: 90-100%
  • Merit: 80-89%
  • Pass: 70-79%

What is the full cost?

£900 Our fees

£450 for 6 assessments at between £70 and £80 each (say, £75)

£135 AAT student admission/membership

£1485 Total cost

Please note:

  • Our fees can be paid for by 5 monthly instalments of £180
  • Our prices include UK postage and any 2 of the 5 optional subjects 
  • that assessment fees vary from centre to centre, and the fee is paid direct to the AAT approved assessment venue that you choose. 
  • it is a requirement that you register with the AAT within 4 weeks of enrolling on the course
  • AAT student admission/membership is £125 for International students
  • the AAT may not accept you as a member if you have been declared bankrupt, or have a criminal record. 

Interest free - £180


Level 4 - £900