Microsoft Loop vs. OneNote vs. Word: What to Use When

Depending on your perspective, Microsoft 365 either spoils us or overwhelms us when it comes to note-taking, document creation, and collaboration tools. Among the most powerful and popular choices are Microsoft Word, Microsoft Loop, and Microsoft OneNote. Each tool has its strengths, but knowing what to use when can save time, improve productivity, and streamline your workflow—and keep you from feeling overwhelmed.

So what are the key differences between Microsoft Word, Loop, and OneNote? We'll go through them so you can confidently choose the right tool for your next project.

What Is Microsoft Loop?

Microsoft Loop is Microsoft's newest collaborative workspace, designed for real-time collaboration, project management, and fluid integration within the Microsoft 365 ecosystem.

Key Features of Microsoft Loop:

• Loop components (live, embeddable elements like task lists or tables)  
• Workspaces and pages for organizing projects  
• Seamless integration with Teams, Outlook, Word, Excel, and more  
• Real-time collaboration with synced updates across users  
• Built-in templates for quick project kickoff 
• A centralized, cloud-first workspace 

Best Used for:

• Cross-functional team projects 
• Brainstorming sessions 
• Task tracking with real-time updates 
• Collaborative project documentation 

What is Microsoft OneNote?

Microsoft OneNote is a digital notebook ideal for collecting ideas, information organization, and collaborative research.

Key Features of Microsoft OneNote:

• Notebooks, sections, and pages structure  
• Syncs across all your devices for anywhere access 
• Supports multimedia: text, images, audio, handwriting, and more 
• Easy collaboration with shared notebooks 
• Rich formatting for detailed information capture 

Best Used for:

• Long-term note storage 
• Personal knowledge bases 
• Class notes and meeting summaries 
• Research and reference materials 

What Is Microsoft Word?

Microsoft Word is the classic document editor for creating polished, professional documents. With robust formatting tools and review capabilities, Word is the go-to for anything that needs to look formal and final

Key Features of Microsoft Word:

• Advanced formatting (tables, charts, styles, templates) 
• Integrated spelling and grammar tools  
• Commenting and track changes for review workflows  
• Templates for reports, resumes, and business documents 
• Offline access with desktop versions 

Best Used for:

• Formal reports and documents 
• Essays, letters, and proposals 
• Polished presentations and exports 
• Long-form editing and revision 

See how Orchestry's preconfigured Teams and SharePoint templates make it easy to give your users the tools they need. Visit our What to Use When page

Microsoft Loop vs. OneNote vs. Word: Side-by-Side Comparison

Which Tool Should You Use?

Knowing when to use Word, Loop, or OneNote depends on your goals and how you like to work. So which one is better: Loop, OneNote or Word?

Choose Microsoft Loop when:

• You need dynamic collaboration in real-time 
• You’re managing multiple contributors or tasks 
• You're working across Microsoft Teams or Outlook 
• You’re building living documents that evolve over time 

Choose Microsoft OneNote when:

• You’re collecting ideas or research over time 
• You prefer a flexible layout for organizing thoughts 
• You’re working solo or in small, informal groups 
• You need multimedia note-taking capabilities 

Choose Microsoft Word when:

• You need a clean, professional document format 
• You're preparing reports, letters, or resumes 
• You want structured editing and formatting tools 
• You need to track edits or provide document feedback 

Should M365 IT Admins Enable Loop, OneNote, and Word?

If you're an M365 IT administrator, deciding which apps to make available to your users isn’t just about licensing—it's about empowering productivity while managing complexity and data security.

Use All Three Tools If:

• Your organization supports a variety of workflows—e.g., documentation, brainstorming, formal reporting. 
• You want to give teams freedom to choose their preferred work styles. 
• You’re already leveraging Teams, Outlook, and Planner across departments. 

Use Only Loop and OneNote If:

• Your focus is modern collaboration, flexible note-taking, and cross-team ideation. 
• Your teams don’t often produce formal documents or reports. 
• You're transitioning away from static document culture toward modular workspaces. 

Use Only Word If:

• Your organization primarily produces structured, client-facing documents. 
• You require rigorous version control and formal writing tools. 
• You want to reduce tool sprawl and keep workflows tightly governed. 

Admin Tip: Even if all three tools are licensed in your tenant, consider tailoring access via app permissions, Teams policies, or training resources. This way, you can empower your teams without overwhelming them.

Final Thoughts: Which One is Better?

Comparing Microsoft Loop vs. OneNote vs. Word isn't about finding the best overall tool—it's about choosing the best fit for your specific needs. Whether you're brainstorming, documenting, or polishing a final report, Microsoft 365 gives you the right tools for the job. Need help navigating the wealth of tools M365 provides? Check out What to Use When page to learn how Orchestry's preconfigured Teams and SharePoint templates make it easy to give your users the tools they need.