Do you know the difference between pressing enter and pressing shift+enter? Do you ever use the TAB key?
How a self-publishing author formats a manuscript depends on what platform they'll use to publish. There's a Smashwords guide which advocates for pasting everything into a txt file and starting formatting from scratch. There are instructions to turn options on in MS Word that show every space and line break.
Do not underestimate how much time and knowledge will be required to format a document to the required specifications. And if you use the tab key, you'll break that habit once you learn how much work it takes to undo all of that.
I like the formatting feature on Draft2Digital -- very user-friendly with good results. You have to do some formatting in Word, but the program does the nitty-gritty.
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Lamia