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The tutorial explains how to set reminders in Excel using two methods: the IF function and conditional formatting. To use the IF function, the user should start with an equal sign, type "IF," and open a bracket. They select the relevant cell (e.g., for road tax expiry) and use a formula comparing the date to today's date plus seven days (e.g., "today()+7"). After that, a reminder message is inserted between quotation marks (e.g., "send reminder"). The instructions highlight how to tailor the reminder text as needed. The video aims to help users manage due dates effectively with Excel's reminder functions.