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You may have already noticed that Excel allows you to type just about anything into your worksheet. Along with text, you can use many different kinds of numbers such as decimals, percentages, dollar amounts, dates, and more. To do this, Excel uses a feature called number formats and its really important to understand how they work. Number formats tell Excel exactly what type of data youre using. When you enter something into a cell, Excel try to apply the right number format automatically. For example, watch what happens when we enter a calendar day into this sell such as 1/1/2015 for January 1st. if you look at the number format drop-down menu on the Home tab, youll see that this is now using the date number format. This tells Excel that were working with a calendar day and not another type of number. If you click the drop-down menu, youll see that there are several other number format to choose from. The general format at the top is the default number format for every cell in y