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In this tutorial, the speaker demonstrates how to create a free online invoice using the Tagged web invoice generator tool. The process begins by searching for the tool on Google and accessing the appropriate link. Users can upload their company's logo and input essential details, including the company name, which the speaker sets as "Tag Inc," and their own name. The speaker also enters the city as New York and the client's name as "Acme Inc." Additionally, an invoice ID can be generated, typically containing the year and date, and the due date is set to a month from the current date. An example item for invoicing is provided as "software consulting."