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In this video tutorial, Michael Elder explains how to fill out an invoice for a service-based business, emphasizing that a simple invoicing system is often preferred over complex apps. He suggests using a traditional paper invoice, which many clients find more relatable. He recommends using a handy invoice book, ideally in a half-size format for convenience. For services that involve multiple tasks, such as a carpet installation, he advises itemizing the services performed and calculating the total at the bottom. The example given involves creating an invoice for a carpet installation job completed for a client named Sally Smith.