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In this video tutorial, Marcus demonstrates how to change an invoice template in Xero. To do this, click on "Business" and then "Invoices" in Xero. Select the invoice you want to edit, go to the three dots, and choose "Invoice Settings." Here, you can customize the template by creating a new branding theme, setting up terms and payment advice, and adjusting the invoice title. If you already have a template created, you can edit it instead of creating a new one from scratch. This allows you to easily modify and personalize your invoice templates in Xero.