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In this tutorial, the presenter demonstrates how to create a free online invoice using the Tagged web invoice generator. The process begins with a Google search for the tool, followed by selecting the appropriate link to start creating an invoice. Users can upload their company logo and enter details such as the company name, indicated here as "Tag Inc," and the user's name, "Pranjal." The presenter provides examples for filling in the city (New York) and the client's name (Acme Inc). Additionally, users can input an invoice ID that typically includes the year and date, as well as adjust the due date, which is defaulted to one month from the invoice creation date. Lastly, an example item, "software consultation," is mentioned for the invoice.