AAT Level 3
Level 3 Diploma in Accounting
The next step after completing AAT Level 2, or for those with relevant accounting or bookkeeping experience, is the AAT Level 3 Diploma in Accounting.
This course expands your technical capability, developing stronger knowledge in management accounting techniques and advanced double entry bookkeeping.
You will move beyond the basics to work with more complex accounting tasks, including depreciation and taxation.
On successful completion, you will achieve AAT Qualified Bookkeeper status and be entitled to use the letters AATQB after your name.
This industry recognised qualification prepares you for further progression to AAT Level 4 Professional Diploma in Accounting, where you can work towards becoming a licensed accountant.
Entry requirements
The AAT Level 3 Diploma in Accounting is ideal for:
– Individuals who have completed the AAT Level 2 Certificate in Accounting
– Those with existing accounting or bookkeeping experience, including strong manual double entry skills
– People already working in accounting who want to gain a recognised qualification to progress into a more senior role
– Learners who hold an equivalent Level 2 accounting qualification from another awarding body
Course Content
Course Overview
£695
AAT study method:
Additional study resources:
AAT tutor support:
Flexibility:
Average completion time:
What will you learn?
The AAT Level 3 Diploma in Accounting builds on Level 2 and develops the higher level technical skills required for progression into more senior accounting and finance roles.
You will move into new areas of accounting, including preparing final accounts within the legal framework, using spreadsheet techniques, and completing calculations for non current assets. You will develop the ability to prepare accounts for sole traders, partnerships, and small limited companies, applying accounting principles accurately and consistently.
The skills developed at Level 3 ensure financial information is prepared in line with organisational policies and legislative requirements, giving you the confidence to take on increased responsibility within a finance function.
Unit 1: Business Awareness
- Understand different business structures and types
- Align accounting activity with professional ethics and standards
- Communicate financial information effectively to stakeholders
- Understand how internal and external environments influence decision making
Unit 2 - Financial Accounting: Preparing Financial Statements
- Prepare financial statements that comply with accounting principles and VAT legislation
- Apply advanced double entry bookkeeping techniques
- Generate and extend trial balances, including depreciation calculations
- Interpret financial statements using profitability ratios to support cash management
- Prepare accounting records and trial balances from incomplete financial information, reflecting real workplace scenarios
Unit 3: Management Accounting Techniques
- Prepare and analyse budgets and carry out variance analysis to monitor performance
- Apply costing systems, including job costing and activity based costing
- Use break even analysis and relevant costing techniques to support decision making
- Measure performance using key financial metrics and evaluate capital investment opportunities
- Apply manual and spreadsheet based techniques to support cost management
- Maintain accurate cost accounting records to support management reporting
Unit 4 – Tax Processes for Businesses
Covers the core principles of business taxation, with a practical focus on applying tax rules and VAT requirements across different types of organisations.
- Understand business taxation principles and how tax applies in a commercial context
- Apply VAT rules and basic tax planning strategies for businesses
- Complete tax returns and meet reporting and compliance requirements
- Understand the legal framework for value added tax
- Calculate VAT on vatable goods and services
- Apply VAT calculations across different VAT thresholds for limited companies, sole traders, and partnerships
Duration
9-12 Months Typically
It is designed to be completed in 9 to 12 months, depending on your personal study pace and prior knowledge.
With 15 months of access to course materials, you can study at your own pace, allowing you to progress comfortably while balancing other commitments.
AAT Exam Format
Exam Details
Exams are sat at an AAT exam centre or by remote invigilation.
Exam Details
- Business Awareness: 150 minutes
- Financial Accounting: Preparing
- Financial Statements: 150 minutes
- Management Accounting Techniques: 150 minutes
- Tax Processes for Businesses: 90 minutes
Once you've completed your computer based exams, the raw marks are converted into a percentage and weighted according to the unit weightings below to provide an overall grade.
- Business Awareness: 15%
- Financial Accounting: Preparing Financial Statements: 40%
- Management Accounting Techniques: 30%
- Tax Processes for Businesses: 15%
You must score at least 70% in each exam to pass the qualification.
Passing Scores:
- Distinction: 90–100%
- Merit: 80–89%
- Pass: 70–79%
- Unclassified: 0–69% (or failure to pass one or more assessments)
You can take the above assessments at an AAT-approved test centres or through remote invigilation at home. To sit the assessment, you must have paid your student membership and exam fees, which are additional to the course fee.
We are Here to Help
Support and resources
- Kaplan hardcopy textbooks: We supply you with the world leading Kaplan study textbooks. You will receive four books, one for each unit studied. Each book can also be downloaded to a digital version for learning on the go.
- Live online classroom: Weekly Tutor-led classes covering revision and exam prep sessions so you can fully understand each topic and be fully prepared for your exam. Run by award winning AAT Tutors of the Year
- Recorded lectures: We understand that life is busy, so all of our live online classes are recorded and made available to you via our learning platform so you still get to benefit from the sessions at a time that works for you and your personal commitments. You're always in control of when and where you study.
- Online study resources: We've loaded our award winning learning platform with additional materials for 24/7 access to : Practice papers, mock exams, question banks and flash cards to check your understanding, downloadable study books and more to ensure you have everything you need without additional costs.
- Free Sage certification: Official Sage Accounting training with Sage certification and access to Sage software during the training to ensure you have the skills employers are looking for.
- Free Xero Accounting training course with certification to ensure you have access to multiple accounting software knowledge and skills which increases your chance of employability.
- Free AAT Level 1 Certificate in Bookkeeping online course to give you greater confidence before you start the AAT Level 2 Certificate in Accounting qualification.
Cost
Payment Options
To help you manage the cost of study, we offer competitive pricing alongside flexible 0% finance options, allowing you to spread payments over a period that suits your budget, with plans available for up to 24 months.
For employers looking to train multiple learners, we offer tailored pricing and finance options. Please contact us for a personalised quote.
We also offer a price match guarantee, because we’re confident that no one delivers the same level of content, support, and added value at the prices we offer.
Please note: exam fees and AAT membership are not included in the course price
Eligability
Before you Start
We recommend this course if you:
- Have completed AAT Level 2 or have relevant accounting work experience
- Have a good standard of written and spoken English
- Have a confident level of basic mathematics
- Have access to a PC or laptop, compatible with both Mac and Windows
These requirements help ensure you are well prepared to progress successfully through the course and apply the learning effectively.
Why choose GH Apprenticeships?
We do more than deliver qualifications. We focus on helping people build confidence, capability, and real career momentum.
Even on our commercial courses, you benefit from the same high quality learning experience that runs across all GH-Apprenticeships programmes. This includes expert led masterclasses, real world insight sessions, and access to exclusive development content led by Grace Hardy, designed to build professional mindset, confidence, and long term progression, not just technical knowledge.
Our approach combines industry recognised qualifications with practical insight, clear progression routes, and support that goes beyond the syllabus. Whether you’re starting out, changing careers, or preparing to progress into an apprenticeship, GH-Apprenticeships gives you more than a course, we help you prepare for what comes next.
If you’re looking for learning that feels relevant, supportive, and genuinely focused on your future, GH-Apprenticeships is the right place to start.
After completing Level 3, the next is to study the Level 4 Diploma in Professional Accounting.
The Level 4 is the final step to becoming a qualified AAT Accountant and achieve MAAT status