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In the video tutorial, Matthew guides viewers on how to create a horse bill of sale using legaltemplates.net. He provides a link to the site and instructs users to navigate to the "personal and family forms" section. Viewers can choose to search for "horse" to locate the horse bill of sale form. After selecting the appropriate form, users need to enter their state (e.g., Texas) and fill in the seller's details, including name, address, and contact information. Additionally, the buyer's information must be entered, which Matthew describes as straightforward. The process emphasizes accurate input of all necessary details for both parties involved in the transaction.