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In this tutorial, the presenter demonstrates how to create a free online invoice using the Tagged web invoice generator tool. To start, users should search for the tool on Google and navigate to the appropriate link. The tool allows customization, such as adding a company logo (e.g., Tag Pep logo) and entering the company name. The presenter inputs "Tag with Inc" and his name, "Pranjal," along with the city, New York. Users can also input their client's name (e.g., Acme Inc.) and assign an invoice ID, which typically includes the year and date. The default due date is set for one month later, and an example item, "Software," is entered as part of the invoicing process.