A few days ago, my boss called me into his office. That doesn’t happen very frequently, so I knew something was wrong. He told me to take a seat, and he had a stack of papers on the desk in front of him. He asked me if I looked at last month’s shrinkage report. The shrinkage report includes all of the miscellaneous items that can go missing throughout the month. In our busy HVAC business, we often have shrinkage each month. The HVAC technicians get busy, and they forget to write down a thermostat or wiring. Our shrinkage is usually a few hundreds of dollars each month. I didn’t have a chance to look at the report from last month yet, and I was very surprised when my boss read me the report. We had a $14,000 loss last month, and that is a huge amount of money. Only a few things can cause that much shrinkage. An employee could have forgotten to enter sales for the week. Someone could have accidentally transposed some numbers on the sales sheets, or we have a thief. My boss gave me 48 hours to find the reason for the huge HVAC loss. The first thing I did was start talking to each of my HVAC employees. I had each one of them go through the invoices for the month, one by one. One of our new HVAC employees didn’t enter any sales into the computer, and his sales equaled close to the amount lost. I called my boss with the information, and we had a stern conversation with our new HVAC employee.