E Dan Yang (State Grid Hubei Electric Power Company Capital Concentration Center, Wuhan, Hubei 430000) Abstract: Power enterprises face unprecedented challenges in optimizing financial management. Inaccurate cash flow forecasting leads to low capital utilization rates, constraining corporate development. This study identifies key issues in current cash flow forecasting methods for power enterprises: insufficient scientific rigor in predictive models, incomplete capital planning systems, low operational efficiency of funds, and weak risk control capabilities. To address these, the paper proposes optimization measures including establishing scientific forecasting models, improving capital planning systems, enhancing fund operational efficiency, and strengthening risk control capabilities. Results demonstrate that cash flow forecasting-based financial management optimization significantly improves corporate profitability, enhances competitiveness, and provides robust support for sustainable development in power enterprises. Keywords: cash flow forecasting; financial management; optimization strategies; power enterprises; risk control