It took a little tinkering, but I finally hit upon the perfect way to integrate Prosper (or LendingClub or …) with Quicken (or Money or …) given the current lack of integration between the services (see here if interested.)

Since implementing that solution I have had defaulted debt sold.

With enough experience behind me I thought that a comparison of the Quicken and Prosper accounting differences and the implication on ROI.

Quicken enters the money into the account the moment the money leaves my bank account and it only acknowledges interest after it has been paid.  Prosper only counts money in loans and acknowledges interest the moment it is accrued.  Both acknowledge default sale amounts the moment they happen.  Neither approach attempt to project a future loan’s value.

What does this mean?  Well it means that with Quicken you can get the ROI for the moment the money enters the account with interest only for actual payments received.  With Prosper you get the ROI for the loans with all accrued interest.  Since you can only deduct defaulted principal (cash basis) I feel that Quicken’s approach is correct.

That being said let’s compare ROI values for my account… Other than the gap the curves are remarkably similar. I am interested to see what the rumored December debt sale looks like.

Related posts:

• Debt Sale Accounting via Quicken In the recent default debt sale I had a loan sold.  This is my first opportunity to account for such an event.  I use Quicken...
• Accounting for Prosper in Quicken Strategy Update? Yesterday I received a comment from a reader: Question: would the principal repayment be considered a “return of capital?” as opposed to a sale? What...
• Quicken Updated My Prosper Account YTD ROI — 12.78% for account, 14.72% for Loans I updated my Quicken Prosper.com brokerage account per yesterday’s post: http://www.rateladder.com/2007/04/10/adam-nash-merged-with-rateladder-to-form-the-ideal-quicken-solution-without-prosper-integration/ The one things that is even easier is that if you use your monthly...
• A Look At the Graphs and Charts from Quicken in My Prosper.com Account Last week I merged RateLadder’s Quicken solution with a Solution from Adam Nash, then I followed up with a post on How Easy The Solution...
• Adam Nash Merged with RateLadder to form the Ideal Quicken Solution (without Prosper integration)  I have found what I think is the most complete solution to the Quicken and Prosper dilemma, but that doesn’t mean it is the best...

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Prosper.com, Quicken, Statistics, Strategy, Tools

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