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In this video, Marcus demonstrates how to edit an invoice template in Xero. To start, go to 'Business' and select 'Invoices.' Choose the desired invoice, click on the three dots for 'Invoice Settings,' and then select 'Options' followed by 'Edit.' This will allow you to modify various aspects of your invoice template. Marcus emphasizes that editing options may vary in different accounts. He concludes by inviting viewers to ask questions in the comments and wishes everyone a great day.