This statement is true.
The most effective way to achieve financial objectives is
through financial planning, We can understand the importance of
this statement by following points:
- Financial planning is a process of identifying, evaluating and
analyzing the project and taking the decision whether that project
will be feasible or not.
- Financial planning is useful in controlling the cost and
increasing the profit, cost is estimated and cost of capital of
different financial alternatives are analyzed and best alternative
that has lower cost and greater benefits, is chosen.
- It also studies Cash flow management. In which, inflow and
outflow of cash are estimated.
- Financial planning increases the efficiency and accuracy of
financial tools.