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In this tutorial, the speaker demonstrates how to create a free online invoice using the Tagged Web Online Invoice Generator. To begin, users are directed to search for the tool online. Once on the site, they can customize their invoice by uploading their company logo and entering relevant details such as the company name, personal name, and city. For example, the speaker uses "Tag with Inc" and "New York" as placeholder entries. Users can also input their client’s name, invoice ID (typically including the year and date), and adjust the due date, which is set to one month from the creation date by default. Finally, the speaker gives an example of entering a software consulting item for billing.