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In this video, Marcus demonstrates how to change an invoice template in Xero. He begins by navigating to the "Business" section and selecting "Invoices." Once there, he suggests clicking on the three dots beside the invoice and accessing "Invoice Settings." Alternatively, settings can be reached directly. In the organization settings, users can modify the invoice template by creating a new branding theme, where they can name the template, set terms, payment advice, and edit the invoice title. If a standard template already exists, users can simply select "Edit" to make changes without needing to create a new one.