I edit graduate student theses. These students grow tired of dealing with Microsoft Word's quirks. It's like you can't untangle the mess no matter how hard you try. When this becomes a problem, I start with a fresh document using the shortcuts I know to copy and paste the thesis into the new document. Figures and tables support the thesis and give it a visual look for data or information. Besides, they offer a nice break from all the content.
Using this set up to label tables and figures ensures they show up in the table of contents, especially if you need to create a "Table of Tables" (yes, that's what it's called) and a "Table of Figures." The standard for most formal documents is to display the caption for the table on top and the caption for the figure on the bottom and Word knows to do this. However, you can change this in the Captions dialog box.