4.8 out of 5 based on 13982 reviews

4.8/5 from 13982 Reviews

10 Essential Insights on AAT Exams from Level 2 to Level 4 Syllabus & CIMA Exemptions

Are you aspiring for a rewarding profession in finance? Then, AAT and CIMA qualifications can help jumpstart your career goals!

AAT and CIMA are two reputable qualifications that impart you with solid fundamental accounting principles. These qualifications prove to be useful in your chosen career or profession. However, you must pass their assessments first before you can leverage them in your career development.

So, in this article, we'll share insights on the AAT exam from Level 2 to your Level 4 syllabus. We'll also discuss CIMA exemptions and how an AAT qualification can help you skip CIMA exams.

About AAT Accounting Qualification

About AAT Accounting Qualification

The Association of Accounting Technicians (AAT) is a reputable professional body offering accounting and bookkeeping qualifications. These qualifications equip you with the core accounting skills necessary to tackle various tasks within the field.

Having these essential skills at your disposal makes you a promising candidate employers want to hire in their firms. AAT provides a structured learning path through their three levels of qualification. Let's talk more about the syllabus for each AAT accounting course below.

AAT Level 2 Syllabus and Exam Details

AAT Level 2 Syllabus and Exam Details

Want to start your accounting journey? Then this AAT course is for you!

The AAT Level 2 Certificate in Accounting is the starting level of the qualification. This course teaches fundamental knowledge like a double entry bookkeeping system, basic costing, and bank reconciliation. The level covers unit subjects such as:

  • Unit 1 - Introduction to Bookkeeping
  • Unit 2 - Principles of Bookkeeping Controls
  • Unit 3 - Principles of Costing
  • Unit 4 - The Business Environment

For this course, you will have computer-based assessments (CBAs) and Synoptic Assessments. AAT Level 2 exams are mostly objective items with sections for multiple-choice and short-answer format. The time completion allotted for these unit assessments is as follows:

  • Introduction to Bookkeeping (90 mins)
  • Principles of Bookkeeping Controls (90 mins)
  • Principles of Costing (90 mins)
  • The Business Environment (2 hours)

AAT Level 3 Syllabus and Exam Details

AAT Level 3 Syllabus and Exam Details

Already familiar with the basic accounting concepts? You should consider going through AAT Level 3 to grasp your accounting knowledge better!

With the basic principles covered in Level 2, AAT Level 3 Diploma in Accounting delves further into the core accounting concepts and practices. This level focuses on intermediate concepts like drafting financial statements, computing business taxes, and business performance. Unit subjects included in this level are:

  • Unit 1 - Business Awareness
  • Unit 2 - Financial Accounting: Preparing Financial Statements
  • Unit 3 - Management Accounting Techniques
  • Unit 4 - Tax Processes for Businesses

You will take CBAs and Synoptic assessments at your AAT-approved assessment venues for this level. AAT Level 3 exams are objective items in multiple-choice and short-answer format. The time completion allotted for these unit assessments is as follows:

  • Business Awareness, 2.5 hours
  • Financial Accounting: Preparing Financial Statements, 2.5 hours
  • Management Accounting Techniques, 2.5 hours
  • Tax Processes for Businesses, 1.5 hours

After passing your AAT exams at this level, you can apply to become a professional member and use the designated letters AATQB (AAT Qualified Bookkeeper) beside your name. You can also become a licensed bookkeeper, providing services to various firms and businesses. Some of the bookkeeping services that you can render are:

  • Maintaining digital bookkeeping systems
  • Preparing financial reports for sole traders and partnerships
  • Managing cash receipts and disbursements
  • Payroll

AAT Level 4 Syllabus and Exam Details

AAT Level 4 Syllabus and Exam Details

Want to step up in your career progression? Master and specialise as a professional accounting technician with AAT Level 4!

AAT Level 4 Advanced Diploma in Accounting broadens your accounting knowledge and explores advanced accounting fields. This level focuses on specialised concepts like consolidated financial statements, financial management skills, and internal control accounts. Mandatory units included in this level are:

  • Unit 1 - Applied Management Accounting
  • Unit 2 - Drafting and Interpreting Financial Statements
  • Unit 3 - Internal Accounting Systems and Controls

Moreover, optional AAT Level 4 modules such as taxation, auditing, and financial management become available at this level. You can study two units out of the five optional units shown below:

  • Optional Unit 1 - Business Tax
  • Optional Unit 2 - Personal Tax
  • Optional Unit 3 - Audit and Assurance
  • Optional Unit 4 - Cash and Financial Management
  • Optional Unit 5 - Credit and Debt Management

You'll take CBAs and synoptic assessments to complete the qualification in your local AAT exam centres. The CBAs will consist of 3 mandatory and 2 unit assessments from your optional units. AAT Level 4 exams will have multiple-choice and short-answer formats for objective items, while your synoptic assessments may include a long-answer format instead.

The mandatory units and their corresponding exam duration are as follows:

  • Drafting and Interpreting Financial Statements, 2.5 hours
  • Applied Management Accounting, 3 hours
  • Internal Accounting Systems and Control, 2.5 hours

Here are the exam durations for the 5 optional units that you'll be choosing from:

  • Business Tax, 2 hours
  • Personal Tax, 2 hours
  • Audit and Assurance, 2.5 hours
  • Credit and Debt Management, 2 hours
  • Cash and Financial Management, 2 hours

After getting the Level 4 Diploma in Professional Accounting, you can apply to become a professional member and use the designated letters MAAT (Full Membership AAT) beside your name. Further, you can apply as a licensed accountant and serve various firms and businesses. Some of the professional accounting services that you can offer are:

  • All AATQB's professional services.
  • Financial accounting for key stakeholders and statutory purposes
  • Conduct Audit and assurance services.
  • Identifying tax planning opportunities.
  • Compute income tax.
  • Compute capital gains tax.
  • Compute inheritance tax
  • Implement a costing system.
  • Implement a budgetary process.
  • Compute capital gains taxes.
  • Appropriate debt management systems
  • Compute business taxes
  • Implement a budgetary process.
  • Conduct a risk assessment

Why You Should Pursue CIMA After AAT

Why You Should Pursue CIMA After AAT

If you completed your AAT Level 4 qualification and aspire to chartered accountancy, getting a CIMA qualification should be your next goal. Here's why.

CIMA qualification is a higher education in accountancy offered by the Chartered Institute of Management that specialises in management accounting and key business concepts. The qualification helps cultivate skills in analysing financial data, developing strategic insights, and assisting decision-making processes. This makes CIMA a complimentary qualification since you've already explored management accounting in your AAT accounting qualification.

What are CIMA Exemptions

What are CIMA Exemptions

CIMA exemptions are credits you gain if you've completed accounting qualifications from other awarding bodies. You can use these exemptions to skip specific exams in your CIMA qualifications based on your relevant proficiency. This exemption is possible because CIMA acknowledges qualifications as proof that you have mastery of specific accounting fields from your previous studies.

Additionally, you will get an exemption based on your previous work experience. CIMA awards exemptions if your experience aligns with the skills and knowledge tested in the exams you want to skip.

Become Eligible for CIMA Exemptions Using AAT Level 4 Diploma

Your Level 4 AAT can be another qualification pathway in your Chartered Global Management Accountant (CGMA) journey.

The formal entry point in CIMA Professional Qualifications is through the CIMA Certificate in Business Accounting. But if you are an AAT Level 4 qualification holder, you can be eligible for an exemption and skip the Certificate in Business Accounting. This exemption helps fast-track your CGMA progress and immediately start with the Professional Qualifications.

Earning your CGMA designation proves your management accounting mastery and opens many career opportunities. But before applying and being a chartered management accountant, you must sit and pass your assessments first. Here are three tips to help you prepare for your CIMA exams.

Be an Active Learner

Be an Active Learner

You will need more than just reading and passively absorbing information to get you far in taking CIMA exams. Instead, you can try a recall session where you become familiar with the critical concepts after scanning a chapter or browsing a video lecture. Take notes as you read, answer question practices, and apply what you learned for the day. This deeper engagement helps retain concepts better during exams.

Do a Mock Exam

Do a Mock Exam

Simulate mock exams for learning and preparing for assessments. Mock exams test your knowledge while building time management skills. More than that, mock exams help identify areas requiring further study and familiarise yourself better with the exam format.

Vary Your Learning Resources

Vary Your Learning Resources

Explore other learning materials that fit your learning style! Diversifying your resources allows for a more holistic approach and lets you understand the topics better. e-Careers offers you the following resources to help you grasp a solid understanding of the topics:

  • e-Learning online platform
  • Complete training kit that includes exam preparation guides and pocket revision kits
  • Tutor Support
  • CIMA-approved learning resources and textbooks

The AAT accounting qualification journey offers a structured format that equips you with valuable skills for different career paths. If you want to progress from AAT, a CIMA qualification is a viable option because it expands on your prior management accounting knowledge.

Accountancy is an invaluable skill and an in-demand profession in the finance sector. So, if you plan to study CIMA or AAT, you need the right resources to help you build a strong foundation in accounting principles.

At e-Careers help with your accounting journey by providing comprehensive courses and resources at an affordable price. Contact us at +44(0) 20 3198 7700 to speak with our career advisors or visit our Accounting page for more information about our AAT and CIMA courses.

Join the thousands of individuals, small businesses, and large corporations who trust e-Careers. ​

Chat with our friendly experts today to discuss your training needs. ​
Speak to a Course Consultant today

Call us now on

+44 (0) 20 3198 7700 Lines open 9am-6pm GMT (Mon-Fri)

Alternatively, you can request a callback​

Enquire Now