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In this video tutorial, James from Accounting Stuff explains invoices, highlighting their definition, importance, and key features. Invoices are essential for any business transaction, serving as formal requests for payment that ensure businesses receive compensation for their goods or services. James emphasizes the necessity of understanding invoicing for both freelancers and corporations. The video includes an example for clarity and promises to address common questions to further simplify the topic. Viewers are encouraged to watch until the end for a comprehensive understanding of invoicing and its role in business operations.