Using Google Docs allows you to create, upload, edit and save your Microsoft Word documents in one database. Beyond that it also allows multiple people to simultaneously edit and save the same document. For people who live in different cities, countries or want to work from home, Google Docs allows for efficient, real-time file sharing between two or more computers.
Log in to your Google Docs account and click the "Create New" drop-down tab near the upper-left-hand corner. Choose "document," or whatever file type you wish, and create the file. Save the file and it will appear in your Google Docs home page.
Check the box to the left of the file you saved and click on the "Share" drop-down box and select "Share Settings." Find the friend or associate that you wish to share the file with from the list and share it with them. Your friend should receive the invitation to edit the document shortly thereafter.
Edit the document together and see the changes the other is making in real time.