: Do the references need to be in sequential order with the chapters? I am writing a non-fiction book. I am not writing the chapters sequentially e.g. the first chapter first and then second

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There are a number of different ways this issue is handled in practice. The most common is for each chapter's references to be placed at the end of the chapter and to start from 1 again for each chapter. I have also seen works that have all references throughout the book included in a single, continuous numbering system, but this is far less common.
The easiest way to handle a non-fiction work that is reference heavy in MS Word would be to create each chapter as a separate document, then create your main document as a merge template. If you do it correctly, swapping chapters/paragraphs etc. around will see your numbering systems updated automatically.

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They will have to be in order when the book is finished -- and that's all the drafts. As long as you can identify which references go to which page in the end, you are keeping sufficient track of the references.

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