Test management tool will help you with archiving test documentation, monitoring test progress and results and clear communication with customer.
You should always keep in mind that main tasks test management tool will help you with are:
Document test cases during Feature Sprints
Document test results
Help to customer with test management during UAT
Customer can use the testcases written by QA analyst as reference to develop their test cases
There are several tools you can use on your project:
X-Ray in Pfx Jira project
Any other test management tool based on your choice. The list of current test management tools is in the following article
https://www.softwaretestinghelp.com/15-best-test-management-tools-for-software-testers/
3. Excel or Word - it should be always just a backup for small projects or small updates, it should be never used on standard project