An Excel workbook is a zip archive of XML parts describing sheets, cells, formulas, styles and charts. The .xlsx extension is that format; .xls is the older binary one from before 2007.
Who uses it
Finance, operations and anyone who received a file from finance or operations.
Reading Excel
Only the first sheet is read, and cells are read as the text Excel displays rather than the number underneath. That matters for dates: a cell showing 15/03/2026 arrives as that string, not as a serial number you would then have to decode.
Writing Excel
You get a single sheet with a header row and column widths sized to the content. Values are written as text unless type inference is on, which keeps identifiers like 0044 or 007 intact.