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In this video, Marcus demonstrates how to edit an invoice template in Xero. To begin, navigate to the "Business" section and select "Invoices." Choose your desired invoice, click on the three dots for invoice settings, and then select "Options" followed by "Edit." This allows you to modify various elements of your invoice template. The video emphasizes that users can edit nearly everything in the template. Marcus concludes by inviting viewers to ask questions in the comments and thanks them for watching.