The AAT Foundation Certificate in Accountancy is ideal for you, whether you’re just looking to further your knowledge in accounting or wish to begin a career in finance or accountancy. This foundation is designed to give you the knowledge and practical skills required to work in the ever-changing and highly demanding environment of the UK business and financial market. With this certificate you’ll learn key concepts like managing risk, budgeting and forecasting, profit and loss, company finance and accounting principles. By gaining the skills you’ve learned you’ll be able to apply them in your current role or plan to further your education in a different area of accountancy. It’s important that people within all industries are aware of the fundamentals of accounting and how it applies in their daily lives. This foundation will provide a gateway into further study at either a university or college, or by contacting a reputable consultancy that specialises in these skills aat level 2.
In order to take this qualification you must have completed the foundation portion of an ATA or CVA, but in most cases can be worked into an existing CV / Resume. This qualification is also regarded as an excellent foundation to build upon, and employers often look to applicants with this knowledge when recruiting. By gaining this qualification it also allows you to sit for the CPA exam, which is hugely beneficial to anyone wanting to become a Chartered Certified Accountant (CPA). This exam must be taken within the UK but can be taken outside the UK as well, depending on the country where you’re going for the CPA role.
The main benefits of this foundation certificate are the practical side, which includes the basics of accounting, budgeting and forecasting, profit and loss, company finance and accounting software. You will learn the terminology and be shown how financial statements are constructed, how they’re presented in the format that they are to be read and how they are influenced by external factors such as taxes and lease payments. It also covers the important process of cost allocation, cash flow and the role of financing. By gaining this qualification you will have gained valuable skills in the world of finance and been qualified to work in a professional environment, which provides you with a great deal of influence and control over the processes that go on within an organisation.
In order to qualify for this foundation certificate you’ll need to have at least five years’ worth of relevant experience in an accounting capacity aat level 3, and should have previously undertaken a Foundation Certificate at the end of the fifth year of relevant employment. The requirements also state that the foundation certificate holder must have undertaken CPA exams that were relevant to finance at the time. You may wish to consider an alternative foundation accounting qualification, which may be acceptable to foundation certificate in finance.
A further requirement of this course is that you must demonstrate that you are able to work effectively within the various operational procedures that are set out within the bookkeeping documents that you will be creating and submitting. These procedures include managing information and transactions, preparing tax and accounts reports, making financial decisions, developing financial proposals, setting up budgets and reporting the results of these activities. As, well as this requirement you must have a strong knowledge of the principles of management accounting, financial statement analysis and the use of economic models. A course based on this material should also provide a firm understanding of budgeting and cost management, and the significance of client management.
Once your training has been concluded, you will be required to sit an examination, normally taken by a panel of experts who are members of an association of accountants called the Institute of Chartered Accountants in London (ICANLL). This exam is used as the international standard for the qualification of people working in a professional capacity in the finance industry in the UK. You will also need to successfully complete a diploma in commerce, or a similar diploma if planning to enter the business field in an executive position. This exam will prove that you have the general ability to undertake accounting functions and understand the principles of finance. To be successful you will need to have a sound knowledge of the principles of management accounting, financial statement analysis and of the principles of business administration.