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In this video tutorial, the presenter demonstrates how to create a free online invoice using the Tagged web online invoice generator. To get started, users should search for the tool on Google and select the appropriate link. The tool allows customization, including uploading a company logo and entering details such as the company name, the user's name, and the city. The presenter uses "Tag Inc" for the company name and "Pranjal" as the user name, with "New York" as the city. Additionally, the client's name can be inputted, and invoice IDs can include the year and date. Users can also set a due date, typically one month from the invoice creation. An example item, "Software Consultation," is suggested for invoicing purposes.