In nodal analysis, the convention is to sum all currents out of a node to zero, which determines the direction of voltage subtraction. When calculating currents, the voltage at the node is subtracted from the voltage at the other node connected by the resistor, with the near voltage being first in the equation. It's essential to maintain the sum format to avoid confusion, ensuring all terms are positive when summing currents out. Understanding this approach simplifies the analysis and helps clarify the correct voltage relationships. This method is crucial for accurately solving circuit problems using Kirchhoff's Current Law (KCL).