How Margarita Howard Used Accounting Systems to Build HX5
Business / Executive / Leaders
When Margarita Howard founded HX5 in 2004, she faced the same pressures confronting most government contracting startups: limited capital, an unproven track record, and the challenge of winning business from agencies and prime contractors with no prior relationship to draw on. Her response to those pressures set HX5 apart from the beginning. Rather than leasing a prominent office or investing in furniture that projected success, Howard allocated her startup funds toward a government-approved accounting system designed specifically for federal contractors.
A Purchase That Paid Off
The decision was deliberate and calculated. Margarita Howard recognized that in government contracting, administrative credibility matters as much as technical capability. Prime contractors regularly passed over small businesses because those firms lacked the billing infrastructure to handle complex cost segregation or pass federal audits. By purchasing a specialized accounting system immediately, HX5 eliminated that barrier before ever pursuing its first contract.
“That’s something HX5 did very early on rather than buying big fancy furniture or offices or anything like that,” Howard said. “It was more important for us that we invest in things like a high-end accounting system that was built and developed specifically for companies who work with the government, and was government reviewed and approved.” The software cost more than typical back-office tools, but Howard viewed it as a prerequisite for serious competition rather than an overhead expense.
Credibility Before the First Contract
The system worked as a credibility signal to potential partners. Large defense firms evaluating subcontractors could see that HX5 already operated the same financial infrastructure they did. That reduced their administrative burden and removed common concerns about billing disputes or failed audits. For Margarita Howard, HX5 was not simply acquiring software; it was demonstrating a philosophy: invest in the capabilities that enable competition, not in appearances that simulate success. That philosophy carried the company from a small startup to a firm employing more than 1,000 professionals across 34 states. Visit this page for more information.
Find more information about Margarita Howard on https://www.f6s.com/member/margarita-howard
