Whenever you're working with a spreadsheet, it's a good idea to use appropriate number formats for your data. Number formats tell your spreadsheet exactly what type of data you're using, like percentages (%), currency ($), times, dates, and so on.
Number formats don't just make your spreadsheet easier to read—they also make it easier to use. When you apply a number format, you're telling your spreadsheet exactly what types of values are stored in a cell. For example, the date format tells the spreadsheet that you're entering specific calendar dates. This allows the spreadsheet to better understand your data, which can help ensure that your data remains consistent and that your formulas are calculated correctly.
If you don't need to use a specific number format, the spreadsheet will usually apply the automatic format by default. However, the automatic format may apply some small formatting changes to your data.
Just like other types of formatting, such as changing the font color, you'll apply number formats by selecting cells and choosing the desired formatting option. There are two main ways to choose a number format:
In this example, we've applied the Currency format, which adds currency symbols ($) and displays two decimal places for any numerical values.
If you select any cells with number formatting, you can see the actual value of the cell in the formula bar. The spreadsheet will use this value for formulas and other calculations.