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In this tutorial, Sarah Banks from Banks in Business Solutions demonstrates how to create a basic invoice template in Word. She begins with a blank Word document, emphasizing the importance of having a logo in the header, referring viewers to a previous video for instructions on inserting the logo. Sarah then guides users to set the document format, starting with a preset heading for the invoice title. Key information required for the invoice includes the recipient's name, supplier address, date, and invoice number, which she highlights as crucial elements to include right from the start.