Singer Elton John has been asked to cut down on his lavish spending amid rumours of financial difficulties.

The singer's company, William A Bang, is reported to have an overdraft of 27 million pounds while last year's accounts showed his earnings dropped by more than five million pounds, celebrity portal Femalefirst reported.

Elton, who is renowned for his extravagant spending, once reportedly spent 300,000 pounds on flowers, has worn five million pounds worth of diamonds and was recently named Britain's most generous charity donor, handing out a staggering 22 million pounds last year.

Pop music accountant Cliff Dane said the flamboyant star would be able to keep his lavish lifestyle if he keeps working.

He said: "Everything is big with Elton John. He makes a lot of money and he needs to keep on making it. He is borrowing more than he is earning for the company at the moment and that is why it has the overdraft."