Understanding Projected Billing: How Your Bill is Projected

When it comes to your monthly bills, you may have noticed that sometimes your charges don’t
perfectly match your actual usage. This is where projected billing comes into play. But what
exactly is projected billing, and how does it work? In this post, we’ll explain the concept of
projected billing and how SimpleBills determines your projected bill.

What is Projected Billing?
Projected billing refers to an estimate of your bill based on historical data, such as your past usage
and billing patterns. Service providers, including utilities, internet, and phone companies, use this
data to predict what your bill might look like for the upcoming period. It’s an attempt to give you an
idea of what to expect, even though the final amount might differ once actual usage is calculated.

SimpleBills relies on a variety of data points, including:
- Previous billing cycles: Your past consumption is a big factor in determining how much
you’re likely to use in the future.
- Average consumption patterns: If your usage has been steady over time, the provider will
use those trends to estimate your bill.
- Seasonal factors: For things like electricity, water, or heating, the season (hot summers or
cold winters) might influence the projected usage.

Why Does Projected Billing Matter?
Projected billing can be very helpful, but it’s also important to understand how it might not always
be 100% accurate. Here’s why it matters:
- Predictability: It gives you a sense of what to expect, allowing you to budget better and plan
your finances accordingly.
- Avoiding surprises: If the projected bill is too high or too low, it’s easier to plan for the
difference once the actual bill comes in.
- Adjustments: If there’s a large difference between the projected and actual bill, a
resolution bill may be issued to account for the discrepancy.