Level 3 Diploma in Accounting (Level 6 in Scotland)

At Level 3* you’ll encounter more complex financial processes, including final accounts for sole traders and partnerships, reports and returns and professional ethics. Read the full learning agenda.

• Perfect if: you’re looking to develop your intermediate accounting skills
• Approximately equivalent to: A-Levels or Scottish Highers.

What’s covered and is it for me?

This second level introduces more complex accounting tasks, like maintaining cost accounting records and the preparation of reports and returns.

Perfect if: you’ve completed Level 2, or you’re already at a more intermediate level and you’re looking to develop your accounting skills.

What’s on the learning agenda?

Accounts preparation 1

• Preparation of final accounts for sole traders, developing your understanding of accounting systems and the environment and principles under which organisations operate.
• Accounting adjustments and accounting for fixed assets

Accounts preparation 2

• Legal requirements and preparation of partnership accounts, showing division of profits after adjusting for interest on capital, interest on drawings and any salaries due to each partner.
• Preparation of final accounts for partnerships and developing skills in restructuring accounting information.
• Preparing final accounts for sole traders, including the accounting treatment required to incorporate accruals and prepayments, provision for depreciation, irrecoverable debts and allowance for doubtful debts.

Cash management

• Principles of managing cash balances and deficits within an organisation.
• Advising on options available for raising finance and on investment of surplus cash, without detriment to the cash flow of normal business activities or risk to the organisation’s ongoing liquidity.

Costs and revenues

• Identifying why cost-accounting is an important tool to an organisation.
• Different approaches to cost accounting and making informed and reasoned judgements to guide management and aid decision making.

Indirect tax

• Understanding current VAT regulations and building your knowledge of VAT registration requirements, different VAT schemes available, penalties for non-compliance and the different types of classification of supplies.
• Performing the calculations needed to complete a VAT return.
• Submitting completed documentation in a timely manner while maintaining an effective working relationship with the relevant tax authority.

Spreadsheets software

• How to use software for recording data in rows and columns, perform calculations with numerical data and present information using charts and graphs.

Professional ethics in accounting and finance

• Importance of ethical duties and how to work within the code to ensure that the public can gain confidence in accounting practices or functions.
• Protecting your and your organisation’s professional reputation and integrity.

Assessment

Module	Assessment
Accounts Preparation I (API)	CBA
Accounts Preparation II (APII)	CBA
Cash Management (CMGT)	CBA
Costs and Revenues (CRS)	CBA
Indirect tax (ITX)	CBP or WBE
Spreadsheets (SPSW)	CBP or WBE
Professional Ethics in Accounting and Finance (PEAF)	CBA

CBA - Computer Based Assessment
CBP - Computer Based Project
WBE - Work Based Evidence
P -Project

Many of the learning areas are assessed by way of a computer based test. These are marked automatically and a provisional result is available immediately.