Government contracting rewards companies that can demonstrate reliability before they have a lengthy track record. Margarita Howard founded HX5 in 2004, which is why she made accounting infrastructure her first major investment rather than waiting until contracts created the need.

The accounting system she purchased was designed specifically for federal contractors, reviewed and approved by government authorities, and familiar to major defense primes already operating in the space. For a company with a single employee and no contract history, it was an unusual expense and an unusually smart one.

Removing Barriers Before They Appear

Small businesses entering government contracting often encounter a frustrating paradox: they need contracts to build experience, but they need experience to win contracts. Infrastructure investments can shift that dynamic. A company with compliant billing systems, audit-ready financials, and proper cost segregation tools is simply easier to partner with than one without those foundations.

“If you don’t have the competitive edge and understand what it takes to compete for government work, then it’s a daunting task,” Howard said. “You have to know and understand the industry first, then build a good team, have the right infrastructure in place, and ultimately be able to meet all the obligations and requirements that come with government contracting.”

Margarita Howard and HX5 met those obligations from day one. The accounting system choice was proof before any auditor or prime contractor asked that HX5 was serious about government work and capable of handling it properly.

From One Employee to a National Presence

HX5 now employs more than 1,000 people across more than 20 states, operating at over 70 government locations. The company holds prime contracts of a scale uncommon for firms its size, and it maintains subcontracting relationships with major defense companies. Margarita Howard credits early infrastructure decisions for enabling that growth.

“We have won some very large prime contracts,” Howard said. “And we have large businesses as our subcontractors.” The path from startup to mid-sized contractor began not with a flashy office or a marketing push, but with an accounting system that told the government and its major contractors exactly what Margarita Howard and HX5 were capable of. Read this article for additional information.

Find more information about HX5 on https://www.f6s.com/member/margarita-howard