Tjyylli

It is said that atoms with the same number of electrons as protons are electrically neutral, so they have no net charge or net electric field.

A particle with charge cannot exist at the same position and time as another; an electron cannot be positioned at the location of a proton, at any single point in time, without displacing the proton.

Assuming the above is correct, how can a single electron cancel out the entire electric field of a proton? I don't think there is any position a single electron can take, that would result in the entire electric field of the proton being cancelled out - it seems like it will always be only partially cancelled out.

For simplicity, let's look at a single hydrogen atom that we consider to be electrically neutral. It has one proton and one electron, so at any single point in time, there will be a partial net electric field (because the electron will never be in a position where its field can completely cancel out the proton's field), and the electric field from the electron will only cancel out part of the field from the proton. So at this single point in time, there will be a net electric field from the proton. So how can this atom be considered to be electrically neutral, with no net charge or field?

Here is a graphical representation of two sources of electric fields interacting:

As you can see from the image, only part of the (equal but opposite) electric fields produced by both sources are affected by each other. To have the field from one source cancel out the other, completely, we would need to position the sources in the same location, at the same time, which is not possible.

I know that I'm wrong, so please correct me.

It is said that atoms with the same number of electrons as protons are electrically neutral, so they have no net charge or net electric field.

This is a great over-simplification, which I am sure you have already determined (based on why you are asking this question). You can have objects that are polarized where, overall, they have no "net charge", yet the distribution of charge is very important. The example you give is an excellent one of a dipole, where the net charge is $0$, yet $mathbf Eneq 0$ at distances away from the dipole.

Really, the idea of electrically neutral is a macroscopic description meaning that if we look in this general area we will see that the number of positive charges exactly balances our the number of negative charges. However, as we "zoom in" we will find this to not be the case for an "electrically neutral" body, since (neglecting QM) we will have point charges at specific locations, and most of the "charge density" will be $0$ due to no charges being present at all, and then "infinite" (or at least really large) at the locations of the charges.

If something is 'Electrically neutral' this means that the algebraic sum of its electric charges, however distributed, is zero.

This does not imply that there is no electric field in its vicinity. Plenty of neutral bodies – even, it is believed, the neutron – have electric fields, for just the reason you have pointed out.

Building upon other answers, we must first differentiate between net charge and electric field - an atom with an equal number of equally charged positive and negative particles will have no net charge, but may still have an electric field, depending on the arrangement of the charge, as in a dipole.

Now, your intuition is correct, it doesn't seem valid that a hydrogen atom is a dipole simply because of the spatial distribution of the subatomic particles. Based on the answer to this question:

Is there an electric field around neutral atoms?

Electrons are not actually "orbiting" the nucleus, and in fact they are not spatially localized, their probability distributions are spread over the nucleus, which leads to a symmetric distribution and neutralization of the overall electric charge in space.

As it has been noted in Wood's answer, electrical neutrality just means that the algebraic sum of the electric charges is zero. It does not imply anything about the presence of fields.
Notice, that the same situation holds also for electrolytic solutions, so no special role is played by the quantum nature of the charges.

About the fields, I would like to add that it is true that there is nothing forbidding to have non-zero fields in a globally neutral system. However, we should also take into account the observation time. Measurements of electric fields correspond to time average of the fields. Therefore, if a short time measurement on microscopic scale could measure a non-zero field, a time average over macroscopic times could give average macroscopic fields close to zero.

It is said that atoms with the same number of electrons as protons are electrically neutral, so they have no net charge or net electric field.

Certainly they have no net charge, but it is not true that they have no net electric field. However, you may have heard this because at a long enough distance, the electric field of objects with no net charge can be negligible compared to the electric field of a charged object.

At distances much larger than the separation between the electrons and nucleus, the magnitude of the electric field of a net neutral object decays more rapidly than that of a charged object. Typically, at such distances, the electric field is dominated by a dipole term. While the electric field of object with a net charge scales $1/r^2$, where $r$ is the distance from the charged object, the electric field of a dipole scales as $1/r^3$. So if you double the distance, the electric field of a charged object is a quarter of what it was, while the electric field of a dipole is an eighth of what it was. Hence, at large distances, the electric field of net neutral objects can sometimes be considered negligible compared to the electric field of charged objects.