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In this tutorial, we learn to create a free online invoice using the Tagged Web Online Invoice Generator. Start by searching for the tool online. Once accessed, you can customize the invoice by uploading your company logo and entering relevant details such as your company name, your name, city (e.g., New York), and your client's name (e.g., Acme Inc). An invoice ID can be created, typically including the year and date, and you can set a due date (default is one month from now). The tutorial provides an example for software consultants, suggesting to include items like "software" in the invoice.