It has been a long time coming, but the open source citation manager Zotero finally natively supports Google Docs! This means that instead of manually managing citations and bibliographies for essays and research papers, Zotero will handle it all for you saving you a huge amount of time!
Simply select your favorite or required citation style (in my case APA), and then use the Zotero plugin for your web browser to add the citation information for journal articles and website to your personal (or shared) Zotero library. To make a bibliography, simply put your cursor in your Google Doc at the location where you would like your references to appear, and the go to the Zotero -> Add/Edit Bibliography, and BOOM, your bibliography is done!
Because Zotero is open source software it is free to download and use, and is supported by universities and libraries around the world. For more information on how Zotero works with Google Docs (and other word processors), please check out the new documentation page for Google Docs on the Zotero website: https://www.zotero.org/support/google_docs . Below is a short video that shows how easier it is to create a bibliography in MS Word (which is very close to how it is done in Google Docs). Enjoy!