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In this tutorial, Sarah Banks from Banks in Business Solutions demonstrates how to create a basic invoice template in Word. She starts with a blank Word document, where her logo is already inserted in the header. Sarah suggests checking her previous video for instructions on logo insertion. She proceeds to set the heading style for the document, using the preset "Heading 1." Key information for the invoice includes the recipient's name, supplier address, date, and invoice number, all of which should be entered clearly to create an effective invoice template.