You have just been hired as a graduate accountant by Water Instincts Industries, a company that manufactures swimwear and swimming products. The company was set up by John Klim in the past year. The company prides itself on producing innovative and stylish swimwear and swim accessories. The companys production base is in Malaga, Western Australia, with its retail store in Innaloo, about 16km away.

On the first day of work, John said to you: Look, we are a pretty small operation here. I am not sure if I really need a management accountant going forward. I guess I need you to balance the accounts and prepare the year end reports, but apart from that, I do not see how we have enough work to warrant me keeping you on full-time. Tell me what it is that you management accountants typically do when its not year-end or month end, because I cant really see management accountants adding value to Water Instincts.

Not an entirely good start to your first job, but you now have to convince John that management accountants are necessary in an organisation and show that you can add value to Water Instincts.

Question

The evolution of the role of a management accountant and how a management accountant adds value to an organisation. (Please use your own words).