S-corporation doesn't have enough cash to pay out salary/distributions equivalent to profit for fiscal year

i'm not an accountant but i am an S-corp owner.  if you don't have the cash, don't take the cash.  you'll still pay taxes on it because the corp made money...that means YOU made money as the profit flows to your personal tax return.

If this answers your question, please click on "solved."

Drvelocity - I am very sympathetic to your situation, but you really need an accountant. This is not a QB problem. Your question has a mixture of business, cash, profit and tax issues combined which you should not divulge or try to resolve here. Best of luck.

 Okay guys I think you're probably right - pvsuppliers that makes a lot of sense.   I'll find myself an accountant, thanks for the input!

Ok may be I don't understand question all the way.

The s corporation can have Retained earning, you can't distribute cash to shareholder more than your equity (different formulas applay).

May be just salary is fine, it can have various scenario.

You have to draw reasonable salray/irs from the s corp based on your line of work.  http://www.thinkinglike.com/S-Corporations-Reasonable-Salary.html  read more in this link.

first you have to draw reasoable salary, and if still left some in the corporation you can leave there or you can distribute if you have enough equity (the accountant can decide).  For example if  you have $40000 total equity in the corporation so far and you did not give any loan.  first you have to draw a reasoble salary that can be $40000 or 30000  or may be more etc (reasoable salary  has long defination, but just for basic it means how much you can earn if you do same job that yor are doing in your s-corp for others).

"assuming the profit and loss statement shows a final profit of 10k"

There is nothing to do. QB will "close" Net Income to Retained Earnings. Look at Help menu > Year End Guide.

"the 10k disbursement and a subsequent 10k equity investment back into the company"

That has nothing to do with the first part you asked. Why would you post a disbursement just to put it back, anyway?

I recommend you find some time to talk with your CPA, or with someone, like me, who teaches how to understand your financial reports. I teach QB students all the time: small business people, big business people, and teaching QB to CPAs always is fun (ha ha ha).

Your Net Income might show $10k, but perhaps you bought a new Drill Press? Not only might there be no money in the bank but you also might have a Liability, too: a loan for the new equipment.

The things you have brought up just don't relate the way you ask about them.