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In this tutorial, Marcus demonstrates how to change an invoice template in Xero. He begins by navigating to the business section and selecting invoices. After choosing the desired invoice and accessing the invoice settings, Marcus highlights the option to create or edit an invoice template. He explains how users can set up a new branding theme, customize elements such as names, terms, payment advice, and invoice titles. Additionally, he notes that if a standard template is already created, users can simply edit it instead of creating a new one. The process allows for comprehensive customization to suit individual needs.