On our first/final parades at the unit we refer to them as “Squadron” as it is the squadron on parade, albeit without the staff fell in.
We reserve “Parade” for formal inspections and reviews where we have flights and execs in place, though if someone uses the wrong word we can deal with it
There will be variation across the ACO because the space each unit has will vary: size of halls, positions of doors etc. the AP isn’t written for us and tends to assume that a parade is a big, formal thing done on a parade square and will think that “dismissing a parade” involves marching off the banner, falling out the officers (who depart) then a Dismiss.
Follow the instructions above but adapt to your local circumstances as required without straying too far from the ideal.
At my squadron we use 2 main options:
Firstly, if it is a quick, final parade we have the squadron formed up in 1 flight with the NCO at the front/centre facing them - they are next to the wall. OC approaches from right and the NCO turns to the right and salutes, then turns left again and hangs about. At the end the OC will come to attention and face the NCO. NCO calls parade to attention, turns to face NCO, is told to dismiss, turns back and does “officer on parade, dismiss” and carries out the action themselves. I don’t ask for lots of extra saluting as the NCO has never left the officer.
If there will be presentations it will start as above but the OC will have the NCO “take Post” (they salute, exit stage left and wait) before taking charge and running proceedings. Once done the OC will call the squadron to attention, face the NCO and summon them by rank (they reply “sir”, march back, salute and take over; officer hangs about) - thereafter the dismiss is as above.
Of course, when the weather is good and there is enough light we do all of that outside but with more space to play with. We can have flights and flight commanders and a the NCO i/c at the front facing in the same direction. Everything is as before but the OC approaches from the front and “take post” sends the NCO round the back.
Incidentally, I have my lot use “dismiss” at the end of first and final parades as it appears to most closely follow the written intention of the AP.