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The video tutorial explains how to create templates in Excel, addressing common misconceptions that they are difficult to set up. The key concept is to prepare a worksheet that allows users to input data without overwriting the original template. This is achieved by making the file read-only, which prevents users from saving changes on top of the existing template. By doing this, multiple users can access the same template and start with a blank version for their own input, preserving the original work. The tutorial emphasizes that setting up a template is straightforward and does not require any special modifications to the Excel sheet itself.
