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In this video tutorial, Marcus demonstrates how to edit an invoice template in Xero. He instructs viewers to log into their Xero account, navigate to the "Business" section, and select "Invoices." From there, users can choose an invoice and access settings by clicking the three dots for "Invoice Settings." To edit, simply click on "Options" and then "Edit" to modify the invoice template as needed. Marcus emphasizes that users can edit virtually everything in the invoice. He concludes by inviting viewers to ask questions in the comments and wishes them a great day.