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In this tutorial, Marcus demonstrates how to change an invoice template in Xero. To start, navigate to the "Business" section and select "Invoices." Click on the three dots next to the invoice you want to modify and choose "Invoice Settings." You can also access this through "Settings." In the "Organization Settings" under "Invoice Settings," you can update the invoice template. Marcus shows how to create a new branding theme, customize the invoice title, terms, and payment advice. If you have an existing template, you can simply edit it instead of creating a new one, making the process straightforward.