Practical skills and competency checklist

Transcription

1 Practical skills and competency checklist

2 Disclaimer Although all reasonable care have been taken to ensure that the content of this factsheet is accurate and reflects industry best practice and regulations, affiliate members should always consider their individual circumstances when using this document. The content of this document does not constitute legal advice and in certain circumstances, it may be necessary for members to seek expert legal advice. AAT will accept no liability for loss caused to any person or entity as a result of acting or refraining to act in accordance with any material in this factsheet. Third party websites Although all reasonable care have been taken when selecting third party websites, AAT is not responsible for the contents or reliability of the linked web sites. AAT accepts no liability for any linked sites and their content and it is important that you take necessary precautions, especially to ensure appropriate safety from viruses and other potentially destructive items. We cannot guarantee that the links will work all of the time and we have no control over the availability of the linked pages. As in all cases, when visiting external websites, you should review those websites' privacy policies and other terms of use to learn more about how they collect and use any personally identifiable information.

3 Level 2 student member Foundation in the understanding and applications of the basics of bookkeeping and accountancy. Able to carry out basic finance functions including: Processing payments and receipts Preparing invoices Apply discounts to creditor payments Completing bank reconciliations Understanding banking procedures Preparing ledger balances and control accounts Clearing the suspense account and making journal adjustments Drafting a trial balance Maintaining petty cash records Using a computerised accounting system Inventory valuation (LIFO, FIFO, AVCO) Basics of manufacturing accounts Understanding of labour costing methods Management of own work time How to manage competing demands in the workplace Effective business communications skills including letters, memos and informal reports

4 Level 3 student member Steps towards taking responsibility / making business decisions Have an understanding of reasonably challenging accounting practices including: Calculating and preparing VAT returns Maintaining records relating to capital acquisition and disposal Calculating depreciation on fixed assets Collecting and collating information for the preparation of final accounts Extending the trial balance Making adjustments for accruals and prepayments Making provisions for doubtful and irrecoverable debts Reconciling ledgers with the cash book Preparing the final accounts of sole traders and partnerships Managing cash budgets Understanding the importance of liquidity management Forecasting and adjusting future cash receipts Understanding and appraising options for investing surplus funds The importance of professional ethics in the working environment Recording and analysing information relating to direct and indirect costs Calculation of marginal and absorbed overheads Short-term decision making using break even points and margins of safety Calculating economic order quantities Calculating flexed budgets Understand fixed, variable and semi-variable costs Analysing variances Understanding various costing methods including; process costing, job costing, batch costing Calculate the cost of work in progress Calculate normal loss and abnormal loss or gain Long term decision making and investment appraisal techniques Use of spreadsheets to manage information in the accounting environment

5 Level 4 student member Final building blocks towards becoming an accounting professional Have a strong understanding of fundamental practical accounting and finance methods including: Drafting and interpreting limited company financial statements Drafting simple consolidated financial statements Understanding and applying relevant IFRS and IAS requirements for financial reporting Preparing forecasts of income and expenditure Preparing draft budgets and revising them as required by the business Managing budgets and reporting variances back to the business Selection of appropriate methods to use when managing budgets Collecting and analysing information about costs and cost behaviours Calculation of performance indicators and what if analysis Reviewing the finance function to identify risk and make recommendations for improvements In addition, depending on the options completed at level 4, the understanding of: Operating a credit control system Understanding the relevant legal features involved in credit control Contributing to the planning and conduct of an audit assignment Preparing capital gains tax and corporation tax computations for businesses Understanding the business tax requirements for incorporated and unincorporated organisations Preparing income tax and capital gains tax computations for individuals Preparing relevant tax returns for individuals and businesses

6 Affiliate member You re nearly there. Now s the time to focus on getting the practical experience and make the most of the career development support and resource available from AAT, on your way to becoming an AAT full member. Fully equipped to work in accounting and finance with a wide range of skills and knowledge including: Drafting and interpreting financial statements for sole traders, partnerships and limited companies Preparing forecasts of income and expenditure Preparing draft budgets Managing budgets Collecting and analysing information about costs Operating a cash management and credit control system Contributing to the planning and conduct of an audit assignment Preparing capital gains tax and corporation tax computations Preparing income tax and capital gains tax computations