Accounts receivable management is one of the most consequential — yet frequently underestimated — levers of corporate financial performance. This article examines how the policies, practices, and systems that govern trade credit and collections shape a firm's liquidity, profitability, and long-run value. Drawing on empirical evidence across manufacturing, retail, and services sectors, the paper traces the causal pathways from credit-granting decisions through collections efficiency to key financial ratios, including return on assets, current ratio, and net profit margin. The article identifies the principal risk factors that lead to receivables deterioration, reviews contemporary management frameworks such as the cash conversion cycle and Days Sales Outstanding (DSO) benchmarking, and proposes an integrated governance model for optimizing receivables portfolios. Findings indicate that firms with disciplined receivables management consistently outperform peers on liquidity and profitability metrics. Practical recommendations are offered for finance managers seeking to translate receivables discipline into measurable shareholder value.

 Keywords: accounts receivable, working capital management, financial performance, cash conversion cycle, Days Sales Outstanding, credit policy, liquidity