By Rhonda Abrams
Gannett News Service

One year is ending, another starting. It's the perfect time to throw stuff out. Yes, it's time to clear off your desk and clean out your files.

So let's clean up together. First, let's get our equipment ready:

1. Two trashcans: One for trash; one for recyclable paper. Keep these next to you.

2. A shredder: I get dozens of pre-approved credit card offers and documents containing confidential information. Shred, shred, shred.

3. Small Post-It notes and a pen: For those documents you're going to keep, put a Post-It with the name of the file. Go through a whole stack this way and then make the files all at once.

4. Scissors and stapler or a scanner: Sometimes you only want one article from a newspaper or magazine. Clip what you want and toss the rest. Scanning eliminates paper altogether.

5. An address database: Time to deal with that stack of old business cards you have lying around.

6. Computer backup system: Clean up your hard drive, too. Transfer old files to CDs, ZIP drives, and/or an online backup system.

7. File folders and file drawers: You need a place to put your files, don't you?

8. Label maker: Files look cool with printed labels.

What to keep?

The next step is to figure out what stuff you absolutely must keep. Here are a few suggestions:

1. Financial documents: Tax returns or any tax filings, bank statements, bookkeeping records, etc.

2. Legal documents: Contracts, business licenses, county tax papers, critical correspondence with suppliers or customers, and anything that might involve a legal action on which the statute of limitation has not run out. Some legal papers, such as your company's incorporation documents, you should hold on to for as long as you're in business.

3. Personnel records: Payroll records, job applications, insurance documents, performance reviews, and anything else that might be necessary in an emergency, if an employee ever has his wages garnished or if you later face a lawsuit.

4. Bids: You naturally hold on to suppliers' bids until the work is finished, but it's also useful to retain even losing bids for the past year or two to keep track of pricing.

5. My columns: Hey, some things are obviously worth saving.

Throw out the rest!

Next, develop a clean-it-out discipline. Here are the two key precepts:

1. Be ruthless: When in doubt, throw it out.

2. Be real: You're never going to get around to reading the stuff you say you're going to get around to reading one day. Toss it.

OK, so now I'm all ready to attack the stacks of stuff I have lying around. And I will - right after I take this next phone call ...

Oh well, spring cleaning is just a few months away.

Rhonda Abrams is the author of "The Successful Business Plan: Secrets & Strategies" and the President of The Planning Shop, publishers of books and other tools for business plans. Register for Rhonda's free business planning newsletter at www.PlanningShop.com.