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In this tutorial, Sarah Banks demonstrates how to create a basic invoice template in Word. She starts with a blank document and mentions that her logo is already inserted in the header, referring viewers to a previous video for guidance on that process. To initiate the invoice creation, she utilizes the preset "Heading 1" format for the document title. Key information to include on the invoice consists of the recipient's name and supplier address, along with the invoice date and a unique invoice number. Sarah emphasizes the importance of including this essential information as she continues with the tutorial.