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In this tutorial, Marcus demonstrates a simple way to change an invoice template in Xero. To begin, navigate to the 'business' section and select 'invoices.' Click on the desired invoice, then access 'invoice settings' through the three dots menu. From there, you can customize the invoice template by creating a new branding theme with options to edit the name, terms, payment advice, and more. Additionally, you can edit a pre-created standard template without having to start from scratch.