Backpocket OS

The AIThatActually WorksFor You.

A local-first, privacy-driven Digital Twin for Australian sole traders. No cloud. No subscriptions. No data leaving your machine.

🚀 The Pitch

The Problem: Australian sole traders are drowning in admin. Invoicing, BAS, ATO compliance, email triage — it consumes 10+ hours every week. Existing "solutions" require cloud uploads, monthly subscriptions, and trust that big tech won't monetise your financial data.

The Solution: BackPocket OS runs entirely on your machine. Your business data never leaves your device. Using Agentic RAG and local large language models, it handles your business admin — generating invoices, classifying emails against Fair Work guidelines, preparing BAS-ready reports — while you stay compliant and in control.

Why Now:

Privacy is no longer optional — GDPR, APPs, and client trust demand it
Local AI is finally fast enough to be practical (Gemma 4 E4B, Phi-3.5)
Sole traders are the backbone of Australian economy — they deserve better tools

The Market: 1.2M+ sole traders in Australia. $3.2B spent annually on business admin tools. We're building the alternative that puts owners first.

🛠️ Installation (Non-Dev Edition)

Prerequisites

Python 3.12+

# macOS
brew install [email protected]

# Ubuntu/Debian
sudo apt update && sudo apt install python3.12 python3.12-venv

Ollama (Local AI Engine)

# macOS
brew install ollama

# Linux
curl -fsSL https://ollama.ai/install.sh | sh

Then pull your model:

ollama pull gemma4:4b   # Recommended for speed
# or
ollama pull phi3.5      # If using Microsoft ecosystem

Whisper (Voice transcription)
```
ollama pull whisper
```

Setup

# Clone or extract this project
cd backpocket-os

# Create virtual environment
python3.12 -m venv venv
source venv/bin/activate  # macOS/Linux
# or
venv\Scripts\Activate  # Windows

# Install dependencies
pip install -r requirements.txt

# Start the app
streamlit run ui/app.py

That's it. Open http://localhost:8501 and start using your Digital Twin.

🔐 Security First: Zero-Cloud Architecture

BackPocket OS is designed with defense in depth. Here's how we protect you:

Data Flow Principles

Layer	Protection
Storage	All data stays in `~/.backpocket/` — local SQLite + ChromaDB. Never sent to external servers.
AI Processing	Ollama runs locally. Prompt inputs and outputs never leave localhost.
Vector DB	ChromaDB stores embeddings locally. No cloud sync.
Network	App operates offline. Internet only needed for initial dependency install.

Threat Model

Threat	Mitigation
Data exfiltration	All I/O bound to local filesystem. No external API calls in core flow.
Model poisoning	Verify Ollama model checksums. Use GNUPG signatures where possible.
Memory scraping	Process isolation via OS user permissions. No shared memory exposed.
Supply chain	Dependencies pinned in `requirements.txt`. Audit with `pip audit`.

What This Means

No cloud account required
No data ever transmitted (verified via network inspection)
You own your data — export or delete anytime
Offline-capable — works without internet

This isn't just "privacy-friendly." It's privacy-native.

📂 Project Structure

backpocket-os/
├── core/                    # Business logic & models
│   ├── __init__.py
│   ├── invoice_engine.py    # Invoice generation
│   ├── compliance.py        # ATO/Fair Work rules
│   └── email_triage.py     # Email classification
├── agents/                  # AI Agent orchestration
│   ├── __init__.py
│   ├── orchestrator.py     # Agentic RAG controller
│   └── prompts.py         # System prompts
├── tools/                  # Tool definitions
│   ├── __init__.py
│   ├── pdf_generator.py   # PDF output
│   └── pdf_extractor.py  # PDF ingestion
├── data/                   # Data stores
│   ├── chromadb/         # Vector embeddings
│   │   └── index/
│   └── ingest/           # Source documents
├── ui/                     # Streamlit frontend
│   └── app.py
├── config/                 # Configuration
│   └── settings.py
├── TASKS.md               # Non-tech contributor tasks
├── ARCHITECTURE.md        # System diagram
└── requirements.txt

🧪 Running Tests

pytest tests/ -v

🤝 Contributing

We need more than code. See TASKS.md for ways to contribute without writing a single line.

📜 License

MIT License — because open source benefits everyone.

Built in Australia, for Australians.