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In this tutorial, the presenter demonstrates how to create a free online invoice using the Tagged web online invoice generator tool. The process begins by searching for the tool on Google and selecting the appropriate link. Users can customize the invoice by uploading their company logo and entering relevant details, such as the company name, personal name, city, and client name. An invoice ID can be created, typically including the year and date, and users can set a due date, which defaults to one month from the invoice date. The example provided focuses on a software consultant invoicing a client for software services.