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In this tutorial, we learn how to create a free online invoice using the Tagged Web Online Invoice Generator. To start, search for the tool on Google and navigate to the link. Users can customize their invoices by uploading their company logo and entering details such as their company name, their name, city, and client’s name. An invoice ID can be assigned, typically including the year and date, and the due date can be modified if needed. The tutorial suggests using a hypothetical scenario of a software consultant invoicing a client, for which items like "software consultation" can be added.