Spreadsheets allow users to enter and organize tabular data in a grid of rows and columns. Cells can contain numbers, text, or formulas. Formulas like SUM, AVERAGE, IF, and MAX allow calculations on cell values. To create a spreadsheet, the user opens a program like Excel and enters data into cells. Formulas update automatically when cell values change. Spreadsheets are useful for tasks like accounting, financial reports, contact lists, and more.