Throughout the series, he is a very “behind-the-scene” character, popping in only when necessary, and never intervened directly. And hence the series has yet to show him fighting someone for real.
The reason why Urahara seems to be so knowledgeable is due the fact that he was the former captain of the Gotei 13’s 12th Division, and was also creator and head of the Shinigami Research Institute. After being sentenced to exile for creating an untraceable gigai (faux body), his positions were taken over by Mayuri Kurotsuchi. And ever since then, he has stayed in the real world, tending to his Urahara Shoten.
Urahara’s zanpakuto is named Benihime (Crimson Princess), and is one of the very few female zanpakuto. When sheathed, Benihime appears as a thin cane. She has a seal on the end of the sheath which allows Urahara to forcefully make Kurosaki Ichigo go into his Shinigami form - which is something Ichigo hates because it hurts.
When unsheathed, the round part of the cane becomes the sword’s hilt. And when Benihime goes into Shikai form (Initial release), she no longer resembles a cane. Her hilt becomes elaborately designed with a golden chain and a red tassel.
Benihime’s Bankai (Final release) form has yet to be revealed.