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In this video tutorial, Marcus demonstrates how to edit an invoice template in Xero. To begin, users should navigate to the "Business" section and click on "Invoices." From there, select the desired invoice, click on the three dots for "Invoice Settings," and then choose "Options" followed by "Edit." This allows users to modify the basic elements of their invoice template. Marcus concludes by inviting viewers to ask questions in the comments and wishes them a great day.