Understanding Workbooks and Worksheets

Before you start creating and saving files, it is important to understand the difference between a workbook and a worksheet. These terms are often confused by beginners, but they represent different things in Excel.

What is a Workbook?

A workbook is the entire Excel file. When you save your work, you are saving a workbook. Think of a workbook as a binder or notebook that can contain multiple pages. Every time you open Excel and create or open a file, you are working with a workbook.

The workbook file has a name (like "Budget2025" or "SalesReport") and a file extension (like .xlsx). This file contains all your data, formulas, formatting, charts, and settings.

What is a Worksheet?

A worksheet (also called a "sheet") is a single page within a workbook. Each worksheet contains a grid of cells organized into rows and columns. A workbook can contain multiple worksheets, and you can see them as tabs at the bottom of the Excel window.

Default Workbook Structure

When you create a new blank workbook in modern versions of Excel, it starts with one worksheet named "Sheet1." You can add more worksheets by clicking the plus sign next to the sheet tabs at the bottom. Previous versions of Excel started with three sheets by default.

• Rename sheets by double-clicking the tab name and typing a new name
• Add new sheets by clicking the + icon next to existing tabs
• Delete sheets by right-clicking the tab and selecting Delete
• Reorder sheets by dragging tabs left or right
• Color-code tabs by right-clicking and choosing Tab Color

Creating a New Workbook

There are several ways to create a new Excel workbook. Learning all these methods gives you flexibility depending on your current situation.

Method 1: From the Start Screen

When you first open Excel, you see the Start screen. This is the easiest place to create a new workbook.

1. Open Microsoft Excel from your Start menu or desktop shortcut
2. On the Start screen, you will see options on the left and templates on the right
3. Click "Blank workbook" in the top-left area to create a fresh, empty workbook
4. Excel opens with a new workbook named "Book1" ready for your data

Method 2: Using the File Menu

If you already have Excel open and want to create an additional new workbook:

1. Click the File tab in the top-left corner of the Ribbon
2. Click "New" in the left sidebar
3. Click "Blank workbook" or choose a template
4. A new workbook opens in a separate window

Method 3: Keyboard Shortcut

The fastest way to create a new workbook is using a keyboard shortcut:

Press Ctrl + N at any time to instantly create a new blank workbook. This shortcut works whether you are on the Start screen or already working in an existing workbook.

Using Excel Templates

Templates are pre-designed workbooks that save you time by providing ready-made layouts, formatting, and even formulas. Instead of starting from scratch, you can use a template and simply add your own data.

Finding Templates

Excel offers hundreds of professional templates for various purposes. To access them:

1. Go to File > New or view the Start screen when opening Excel
2. Browse featured templates displayed on the right side
3. Use the search box to find specific templates (e.g., "budget," "invoice," "calendar")
4. Click a template to preview it and see a description
5. Click "Create" to open a new workbook based on that template

Popular Template Categories

Saving Your Workbook for the First Time

When you create a new workbook, Excel gives it a temporary name like "Book1" or "Book2." This workbook exists only in your computer's memory. If you close Excel or your computer loses power, you will lose all your work. That is why saving is so important.

How to Save a New Workbook

1. Click the File tab in the top-left corner of the Ribbon
2. Click "Save As" in the left sidebar (or just "Save" for new files)
3. Choose a location — This PC, OneDrive, or Browse for a specific folder
4. Enter a file name in the "File name" box — choose something descriptive
5. Verify the file type is "Excel Workbook (*.xlsx)" unless you need a different format
6. Click "Save" to store your workbook

Quick Save Methods

Choosing a Good File Name

A descriptive file name helps you find your workbook later. Here are some naming tips:

• Be specific — "Q1_Sales_Report_2025" is better than "Report"
• Include dates — Add the year, month, or date when relevant
• Use underscores or hyphens — Avoid spaces if sharing files across systems
• Keep it concise — Long names can get truncated in file explorers
• Avoid special characters — Do not use / \ : * ? " < > | in file names

Excel File Formats Explained

Excel can save workbooks in several different file formats. Each format has its own purpose and compatibility considerations. Understanding these formats helps you choose the right one for your needs.

Format Comparison

Where to Save Your Files

Choosing the right save location is as important as saving itself. Modern Excel offers several storage options, each with its own advantages.

Recommended Folder Structure

Organizing your Excel files in a logical folder structure saves time when searching for documents later:

• Documents > Excel — A dedicated folder for all your Excel files
• Create subfolders by project — Keep related files together
• Use year folders — Separate files by year for easy archiving
• Add a "Templates" folder — Store your frequently used templates

Save vs. Save As

Excel offers two save commands that serve different purposes. Understanding when to use each one prevents confusion and potential data loss.

Save (Ctrl + S)

The Save command updates the existing file with your current changes. Use this for quick, frequent saves while working on a document.

• Overwrites the existing file with current content
• Keeps the same file name and location
• Fast — no dialog box appears (after first save)
• Use this frequently while working

Save As (F12)

The Save As command creates a new copy of your file with a new name, location, or format. Use this when you want to preserve the original while creating a variant.

• Creates a new file — the original remains unchanged
• Lets you choose a new name, location, or format
• Opens the Save As dialog box
• Use this to create versions or copies

When to Use Each

AutoSave and AutoRecover

Modern Excel includes two features that protect your work from unexpected loss: AutoSave and AutoRecover. Understanding both helps you work confidently without worrying about crashes or power failures.

AutoSave (Cloud Files)

AutoSave is only available for files stored in the cloud (OneDrive, SharePoint, or OneDrive for Business). It requires an internet connection and a Microsoft 365 subscription.

Benefits of AutoSave

• Never lose work — Changes are saved every few seconds automatically
• Version history — View and restore previous versions of your file
• Real-time collaboration — Multiple people can edit the same file simultaneously
• Access anywhere — Open your file from any device with internet access

AutoRecover (Local Backup)

AutoRecover is a safety net for files saved locally on your computer. Excel periodically saves backup copies of your work. If Excel crashes or your computer loses power, you can recover your most recent AutoRecover file when you restart Excel.

AutoRecover Settings

1. Go to File > Options to open Excel Options
2. Click "Save" in the left sidebar
3. Find "Save AutoRecover information every X minutes" — default is 10 minutes
4. Reduce to 5 minutes or less for more frequent backups
5. Click OK to save your settings

Recovering Unsaved Work

If Excel crashes or you close a file without saving, try these recovery steps:

1. Reopen Excel — The Document Recovery pane may appear automatically
2. If not, go to File > Open > Recent
3. Scroll to the bottom and click "Recover Unsaved Workbooks"
4. Browse the recovery folder for your file
5. Open and immediately Save As to a proper location

Opening Existing Workbooks

You will often need to open workbooks you created previously or files shared by others. Excel provides several methods to open existing files.

Method 1: Recent Files

The fastest way to open a file you worked on recently:

1. Open Excel — Recent files appear on the Start screen
2. Or go to File > Open > Recent
3. Click the file name to open it immediately

Method 2: File Menu

1. Click File > Open
2. Choose a location — Recent, OneDrive, This PC, or Browse
3. Navigate to the folder containing your file
4. Select the file and click Open

Method 3: Keyboard Shortcut

Method 4: Double-Click in File Explorer

Navigate to the file in Windows File Explorer and double-click the Excel file. This opens Excel (if not already open) and loads the workbook automatically.

Method 5: Drag and Drop

If Excel is already open, you can drag a file from File Explorer and drop it onto the Excel window to open it.

Opening Multiple Workbooks

You can have several workbooks open simultaneously. Each opens in its own window. Use these methods to work with multiple files:

• Alt + Tab — Switch between open windows
• View > Switch Windows — See a list of all open workbooks
• View > Arrange All — Display multiple workbooks side by side

Practice Exercise: Create and Save Your First Workbook

Now it is time to apply everything you have learned! Complete this hands-on exercise to master creating and saving Excel workbooks.