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The tutorial explains how to create a project budget in Excel, starting with a blank workbook. The first step is to label the sheet as "Project Budget Tutorial" and ensure the text is black for clarity. Users are advised to input the "Project Name" and change the font to Century Gothic. Providing basic information about the project is essential for anyone reviewing the budget. The instructor also suggests expanding cells for better visibility. This step-by-step guidance aims to help users effectively format and capture necessary data for their project budgets in Excel.